Avalanche shows signs of momentum strength as price surges, but technical analysis reveals a major momentum test at $19.15. Will the bulls break above this resistance?
Avalanche has seen a surge in network activity over the past two weeks, with the number of unique active addresses steadily rising. According to CoinMarketCap data, AVAX is trading at $ 18.23, a 2.36% price increase with a 91.64% surge in trading volume over the past 24 hours, at press time. However, despite the price uptrend, volume and sentiment hints at a cautious trader activity.
AVAX technical setup
Since June 22, AVAX has been trading in a diagonal bullish structure, a sign of weak bullish aggression. Despite a high trading volume, traders appear to cautiously enter positions, waiting for a strong bullish momentum confirmation. With the price fluctuating around $18.25, AVAX bulls face resistance a $19.15. A break above this key level could indicate the coin’s bullishness and spark a rally to higher price targets.
According to crypto analyst More Crypto Online on X (formerly Twitter), the current setup remains vulnerable to further downside pressure. If the bulls fail to hold above the $19.15 key resistance level, AVAX could continue its diagonal consolidation and potentially drop to retest the $17.52 zone. The current price fluctuation must hold above this support to maintain the price uptrend while attempting a breakout.
AVAX’s open interest has surged by 5.24% per Coinglass data. However, technical indicators such as moving averages and the MACD levels signal mixed signals in the market. If traders step in with high buying volume, AVAX could break above the current reistance level and spark a bull run in the near term.
Disclaimer:Â This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their research before making financial decisions.
