The technical analysis of AVAX is of critical importance, especially for futures traders. At the time of writing, AVAX is trading at $22.25. What does the technical analysis suggest for AVAX? Let’s take a detailed look at the charts and important support/resistance levels.
The first notable formation on the two-hour AVAX chart is a triangle that broke the resistance line on December 1st and continued its upward movement. AVAX has been consolidating in a narrow range in recent candle closes, which will determine its potential support or resistance breakout.
The most important support levels to watch on the two-hour AVAX chart are $22.06, $21.56, and $20.70, respectively. A candle close below $22.06 could expose AVAX to selling pressure in the short term. However, if the candle does not close below the EMA 200 level at $21.13, a bullish scenario can be considered for AVAX.
The critical resistance levels on the two-hour chart for AVAX are $22.50, $23.05, and $23.75, respectively. A candle close above $22.50, especially after the recent rally, will give momentum to AVAX.
In the weekly AVAX/ETH chart, a downward trend has been ongoing since July, but after a retest, AVAX/ETH continues to gain momentum. AVAX gaining momentum against Ethereum can bring back the competition seen among Layer-1 ecosystems in 2021.