AVAX Investors Beware! You Won’t Want to Invest Without Seeing These Levels!
Since the crypto crash in early November, Avalanche (AVAX) has made unsuccessful price movements. The events that happened pushed AVAX down and broke several supports that were expected to be strong throughout the process. At the time of writing, however, AVAX seemed determined to regain the ground he had lost.
Can the Bulls maintain their momentum?
It was trading at $13.05 after an upward break from a rising wedge chart pattern (blue line). An earlier and similar bullish wedge pattern (blue, dotted) had led to a bullish break that took AVAX to a periodic ATH of $20.61 in November. If history repeats itself, AVAX could reach this new peak in the next few weeks or months.
October September and mid-October, the price movement of AVAX formed a wedge (blue, dotted), which Decayed. After that, a bullish break typical of the falling wedge pattern put AVAX into an uptrend from mid-October.
The uptrend after mid-October drew a rising channel (white). In most cases, a rising channel is followed by a downtrend. In AVAX’s case, the downtrend coincided with the crypto collapse in early November. The price of the altcoin fell from $20 to $ 11.5, losing about 50% of its gains in the process.
The price action of AVAX after the collapse formed another bullish wedge chart pattern (blue line). If it follows its previous trend, the bullish move could set AVAX up for another price rally in the coming days or weeks.
The height of the previous bullish wedge matched the height of the ascending channel (white), leading to a periodic ATH at the level of $ 20.6 (100% Fib level) in November. The current bullish wedge can also trigger an uptrend. Due to its height, the new target may be $ 15.64.
The relative strength index (RSI) seemed to be pulling back from the oversold zone, which may be a sign of selling pressure. A possible moving averages convergence divergence (MACD) crossover also revealed that buyers are nearing control.
However, the equilibrium volume (OBV) showed signs of a slight uptrend after hitting a series of low levels since the end of September. This situation was underlined by the low volume of transactions, which could weaken the buying pressure.
The closing of the intraday candlestick below the write-time support at $11.46 may invalidate the above bullish trend. In this case, AVAX may extend its decline to its new supports at $9.3 or $8.5.
Price-volume decoupling and decline in development activities
According to Santiment, AVAX’s development activities have steadily increased since mid-October. The price has also appreciated significantly, as shown in the ascending channel (white) in the chart above.
November October, the development activity decreased, however, it rose only in mid-November, and then fell. The price followed the trend with all consistency. Moreover, price slopes corresponded to positively weighted sentiment and vice versa.
At the time of writing, the price-volume decomposition revealed falling transaction volumes along with rising prices. This could possibly be a sign of an imminent price correction. Therefore, it may be useful for long-term investors to follow the development activities and sentiment of AVAX.
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