At the time of writing, AVAX cost $14.70. It is currently trading near its immediate resistance level of $15. A break above $15 has the potential to propel the altcoin towards $15.80 and eventually $16.
Buyer involvement in the market is crucial to generating demand and facilitating AVAX’s upward price movement. On the other hand, if AVAX fails to hold its current price level, it may find support near $14 before possibly trading below that level. The recent trading session showed a decrease in the amount of AVAX traded, indicating the dominance of sellers in the market.
Technical analysis
Throughout May and part of April, AVAX experienced consistently low buying pressure, reflecting limited demand for the altcoin. The Relative Strength Index (RSI) was below 40, indicating that sellers were outnumbering buyers at the time of writing.
In addition, the AVAX price fell below the 20-Simple Moving Average (20-SMA) line, demonstrating that sellers were the driving force behind the price momentum in the market.
A significant move above the $15 price level would help AVAX surpass the 20-SMA line, suggesting a potential shift in momentum and potentially attracting more buying interest.
Although AVAX has recently returned to the $14 price zone, there are no clear indications of buying power according to technical indicators.
The Moving Average Convergence Divergence (MACD) provides insight into price momentum. It just formed one green histogram, which doesn’t necessarily mean buy signals at this point.
The Bollinger Bands, which reflect price volatility and swings, have remained wide, indicating that the possibility of price swings cannot be ruled out in the coming trading sessions.
Featured image from UnSplash, charts from TradingView.com
