As the crypto market awaits with anticipation, trading volumes have dipped due to the holiday season, leading to reduced volatility in Bitcoin and various altcoins. Layer-1 projects like Solana, which had been on the rise, are now losing momentum due to investors taking profits. The focus now shifts to Avalanche’s native token, AVAX, to see what the future holds.
The four-hour AVAX chart shows a rising channel formation, which is of particular interest. The price touching the support line after a long period suggests that upcoming bar formations could provide clues for future direction. However, the recent bar closing below the EMA 21 (blue line) hints at a potential bearish scenario for AVAX in the short term.
Critical support levels on the four-hour AVAX chart are at $39.21, $36.53, and $33.95. A bar close below the significant support level of $39.21 could lead to increased selling pressure in the short term. Conversely, resistance levels to watch are at $42.19, $45.15, and $49.00. A close above the $42.19 level, which intersects with the EMA 7 (green line), could signal a gain in momentum for AVAX’s price.
On the weekly AVAX chart, a descending channel formation is observed, spanning from October 2021 to the present. The recent break above resistance has given AVAX significant upward momentum, which is a key indicator for investors.
Important weekly support levels for AVAX are at $37.10, $30.80, and $23.02. A weekly close below the crucial level of $37.10 could expose AVAX to selling pressure. Resistance levels to monitor are at $50.21, $72.86, and $104.51. A weekly close above the $50.21 resistance could propel AVAX’s price further.
In summary, AVAX’s price action is at a crossroads, with key support and resistance levels providing guidance for investors. The token’s performance in the coming days will be critical in determining the short-term trend for AVAX within the volatile crypto market.