The price of Avalanche’s AVAX token has been surging lately, with another 18% pump today that has taken AVAX to around the $60 level. But what is driving this recent rally in AVAX?
Technical analysis suggests the upward momentum could continue further based on several indicators. The popular trader CScalp shared their long AVAX position on TradingView:
“LONG #AVAXUSDT from $57.3 stop loss $54.315m TF. The instrument is currently in the growth leaders, the upward movement structure continues, after the night spill, the price was perfectly bought off, high buyer activity appeared again + trading volumes increased noticeably locally, the price tightened under the formed cascade of highs, which retains liquidity, the removal of which I will consider, I expect to see a continuation of the long to the $62 mark.”
Breaking this down, CScalp points to several bullish factors like AVAX being one of the market leaders right now, strong buyer demand absorbing sell-offs, increasing trading volume, and the price coiling up beneath a cascade of higher highs. This suggests AVAX has been consolidating after the recent run-up while maintaining bullish structure.
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Show more +Other technical indicators still favor more upside for AVAX. The MACD line being below the signal line is a bearish signal indicating waning short-term momentum. However, the RSI hovering around 50 across timeframes suggests AVAX is not overbought and has room to rally further. CScalp’s $62 target also aligns with the 2.618 Fibonacci extension level, a common price objective for bullish continuations.
Given the weight of technical evidence, the path of least resistance for AVAX seems to be continuing its uptrend in the near-term. A break and daily close above $62 could open the door for the rally to extend further towards the next major resistance around $70-75. However, any loss of the $54 support level would put the brakes on the current bullish move.
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