Starting this month on a weak note, which led to some price reductions, Avax found solid ground and began to show strength again. Although, it pulled back a bit but resumed buying and broke out of a channel.
Avax’s daily outlook appeared positive over the past two weeks as it continued to paint greens. Crossing over into this month bearishly, the crypto managed to bounce back stronger following this week’s surge.
In fact, the price is now sitting at a multi-week resistance after breaking out of a six-month channel. This was triggered by a little change in the market sentiments as the trend slowly turned positive on the daily chart. More growths are expected if the bulls continue to show commitment.
This may lead to a short-term shift in the trend before initiating a mega rally in the future. While the bulls become more formidable by the day with enhanced volatility, Avax could reclaim its lost key $30 level by the end of this week.
However, looking at the market structure on a mid-term scale, Avax is still trading in a bearish zone. Failure to push above the mentioned key level could return bearish actions. For now, the bulls are in control.
If the monthly low level continued to provide support for the market, we can expect bigger gains in the future. So far, it has seen a noticeable recovery as it charts a 15% gain in a month.
Avax’s Key Level To Watch
Source: Tradingview
In the latest bullish move, Avax just rejejcted the $28 resistance level. A successful flip through it could bring more growths to the $30 level and potentially $33 soon.
Should the price drops, it may pull back to the $22.8 support before bouncing back. There’s also support at $20.5 in case of an extension. August’s $17.3 low is the next level to keep an eye on for further losses.
Key Resistance Levels: $28, $30, $33
Key Support Levels: $22.8, $20.5, $17.3
Spot Price: $27
Trend: Bullish
Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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