Avalanche (AVAX) recently retested its critical support level at $26.34 and is now demonstrating signs of an upward trend. Recent data shows that AVAX has risen to $28.22, indicating a bullish movement. This positive outlook is bolstered by increased development activities on the Avalanche network. The question arises: what does this upward shift signify?
Where Does AVAX Face Resistance?
Earlier this week, Avalanche encountered resistance at the $32.66 mark, causing the price to retreat to a support level of $26.34. This recoil led to a 2% rise, pushing AVAX to $27.95. Should this support level remain firm, AVAX could potentially rally and retest the $32.66 resistance, offering a possible 24% gain.
Technical indicators are showing promising signs for a sustained bullish trend. The Relative Strength Index (RSI) briefly dipped below 50, and the Awesome Oscillator (AO) mirrored this pattern. For the bullish momentum to persist, these indicators must stay above their average levels.
What Are the Risks and Key Levels?
IntoTheBlock data indicates that approximately 147,960 addresses hold 1.24 million AVAX at an average price of $27.43. This underscores the significance of the support zone between $26.99 and $27.78, which should be closely watched.
Development activities are also painting a positive picture. According to Santiment, the Development Activity index rose from 179 on July 22 to 188 on July 25. This increase is a positive sign for the health of the Avalanche network and supports the bullish outlook for AVAX.
Actionable Insights
– Monitor the support zone between $26.99 and $27.78 closely.
– Watch for technical indicators such as RSI and AO to remain above their average levels.
– Keep an eye on the $32.66 resistance level for potential gains.
– Stay updated on development activities within the Avalanche network for further insights into the coin’s health.
Conclusion
Avalanche (AVAX) is experiencing a promising rally after rebounding from a critical support level. Increasing on-chain development activities and positive technical indicators are supporting this ascent. However, caution is advised as a close below the $21.99 mark could invalidate the bullish scenario, posing a downside risk.