Avalanche highlighted recoveries on the charts. The alternative token gained 4.8% within the past 24 hours. Though a substantial daily uptick, AVAX trades beneath its long-standing support barrier. That comes as the overall market saw bullish actions.
However, this might not be the time to consider daily surges as enough signals to purchase crypto tokens. AVAX’s technical is yet to depict massive bullishness. And that can mean AVAX is a lucrative buy at this publication.
Avalanche dropped around 8% of its market cap within the past week. The declines had most investors liquidating AVAX holdings and leaving the marketplace. Meanwhile, breaking beneath the long-term support barrier might mean a red flag for AVAX investors.
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Avalanche has another dependable support barrier at $20. Moreover, the alternative token hasn’t traded around current value areas since August 2021.
AVAX 1Day Timeframe
Avalanche traded near $31 at this publication. The token has laterally traversed at this value area for almost one week now. AVAX revisited this region in 2021. Nevertheless, the crypto was on uptrends at the time.
Avalanche’s closest resistance zone stood near $40. A decline beneath current value areas might see AVAX plummeting towards the $20 support barrier. Failure to steady around this floor might see the altcoin hitting $12, then $9 support zone.
The alternative assets still present weakness on the chat. The technical picture appears bearish as buyers quit the marketplace. As the altcoin revisited the August 2021 price region, Avalanche stayed under sellers’ chains.
Meanwhile, the Relative Strength Index bordered the oversold level. It might be early to claim price reversals unless the RSI moves beyond the half-line. Also, the Directional Movement Index confirms bears in control of AVAX space. The –DI stayed beyond +DI, confirming bearishness. The ADI hovered near 50, meaning steady price actions plus fewer reversal signals.
The daily chart showed AVAX’s technical suggesting potential price direction shift (at this publication). The Moving Average Convergence Divergence presented a green sign bar beyond the half-line. A green bar beyond the half-line could suggest a buy signal, and continued buy signals might reveal price momentum shifts.
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Also, Parabolic SAR presents a dot under the price candlesticks, suggesting price direction change. More dotting below the candles in the coming sessions could see AVAX staging recoveries on the charts.
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