Avalanche (AVAX) has recently seen its price movements eliminate the losses experienced in May and June. Just under a week ago, AVAX’s price exceeded the $30 mark, instilling bullish sentiments among investors. However, extended analyses suggest that the price might not meet investor expectations, as indicated by Fibonacci levels forecasting possible future movements.
Current Market Sentiment
At present, the overall market reflects a positive daily outlook, while the weekly perspective remains bearish. This discrepancy suggests that AVAX could reach up to $40 before potentially reversing. Key Fibonacci retracement levels from the May and June declines have been significant, with the 50% level at $32.66 acting as a major resistance.
The daily Relative Strength Index (RSI) stands at 51. After a pullback last week, today’s outlook appears optimistic. The On-Balance Volume (OBV) in June appeared stable, indicating that buyers on the Avalanche side are still hesitant to drive a rally.
Potential Price Movements
Early this month, liquidity around the $30.8 mark enabled upward price traction, with AVAX rising to $33 before retreating. For further gains, significant levels include $34.3, $37.5, and $39.5. There’s a possibility that AVAX could form a range above $30, triggering a downward movement as it captures existing liquidity, leading to the liquidation of short positions.
Fibonacci retracement levels play a pivotal role in this context. Leveraged investors might anticipate the weekly market structure to remain constant until AVAX surpasses $38. Concurrently, a decline in market volume has been observed, with AVAX’s market cap dropping to $10.842 billion, keeping its 12th rank. Trading volume has decreased by 47%, now at $340.6 million.
Key Takeaways
- AVAX price surpassed $30, exciting investors.
- Fibonacci levels indicate significant resistance at $32.66.
- Daily RSI stands at 51; market outlook appears optimistic today.
- Potential gains could see AVAX reaching $34.3, $37.5, and $39.5.
- Market volume decline observed, with a 47% drop in trading volume.
Overall, while AVAX has shown promising upward movements, investors should be cautious of potential downturns. The interplay of Fibonacci levels and market volume trends will be crucial in predicting future price actions.
