AVAX price is showing positive signs above the $20 support. Avalanche bulls appear to be in control and could target a rally towards $25.
- AVAX price is showing positive signs above the $20 level against the US dollar.
- The price is trading above USD 21 and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support near $20.60 on the 4-hour chart of the AVAX/USD pair (Kraken data source).
- The pair could continue to rise if there is a clear move above the $22.50 and $23.00 resistance levels.
AVAX Price Signals New Rally
After surging, Avalanche’s AVAX faced resistance near the $24.00 zone. It started a downward correction from $24.05 but remained in a positive zone, just like Bitcoin and Ethereum.
There was a decline below the USD 23 and USD 22 levels. The price fell below the 50% Fib retracement level of the upward move from the $15.60 swing low to the $24.05 high. It even peaked below the $20 support zone. However, the bulls were active above $18.80.
AVAX price found support near $18.80 and the 61.8% Fib retracement level of the upward move from the $15.60 swing low to the $24.05 high. It is moving higher again and is trading above the $20 level.
There was a move above the $21 zone and the 100 simple moving average (4 hours). There is also a major bullish trendline forming with support around $20.60 on the 4-hour chart of the AVAX/USD pair. On the upside, immediate resistance is near the $22.50 zone.
Source: AVAXUSD on TradingView.com
The next major resistance is forming near the $23.00 zone. If there is an upside break above the USD 22.50 and USD 23.00 levels, the price could rise by more than 10%. In the mentioned case, the price could steadily rise towards the $25 level.
Dips limited in avalanche?
If AVAX price fails to hold higher above the USD 22.50 or USD 23.00 level, it could trigger another decline. The immediate downside support is near the $20.60 level and the 100 simple moving average (4 hours).
The main support is near the $19.50 zone. A downside break below the $19.50 level could open the doors for another decline towards $18.80. The next major support is near the $15.80 level.
Technical indicators
4-hour MACD – The MACD for AVAX/USD is gaining strength in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for AVAX/USD is now above the 50 level.
Major support levels – USD 19.50 and USD 18.80.
Major resistance levels – $22.50, $23.00 and $25.00.
