AVAX price rose more than 10% and traded above the $45 level. The avalanche is gaining speed and could soon cross the USD 50 resistance zone.
- AVAX price is moving higher from the USD 38.00 support zone against the US dollar.
- The price is trading above USD 42.00 and the 100 simple moving average (4 hours).
- A major ascending channel is forming with support near $40.80 on the 4-hour chart of the AVAX/USD pair (Kraken data source).
- The pair could continue to rise if it remains above the $40 and $38 support levels.
AVAX price may extend the rally
After a downward correction, Avalanche’s AVAX found support near the $38.00 zone. A low was formed around $36.48, and the price started to rise again.
The price rose more than 10% and broke many hurdles near $40. It even outperformed Bitcoin and Ethereum. There was a clear wave above the 76.4% Fib retracement level of the downward move from the $45.33 swing high to the $36.48 low.
AVAX price is now trading above $42 and the 100 simple moving average (4 hours). A key ascending channel is also forming with support around $40.80 on the 4-hour chart of the AVAX/USD pair.
Source: AVAXUSD on TradingView.com
On the upside, immediate resistance is near the $45.40 zone. The next major resistance is forming near the $46.80 zone. If there is an upside break above the USD 45.40 and USD 46.80 levels, the price could rise by more than 10%. In the mentioned case, the price could rise steadily towards the USD 50 level or even USD 52.
Dips supported in avalanche?
If AVAX price fails to hold higher above the USD 45.40 or USD 46.80 level, it could trigger a downside correction. The immediate downside support is near the channel trendline at $40.80.
The main support is near the $38.00 zone. A downside break below the $38.00 level could open the doors for a big decline towards $34.20 and the 100 simple moving average (4-hours). The next major support is near the $27.50 level.
Technical indicators
4-hour MACD – The MACD for AVAX/USD is gaining momentum 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 40.80 and USD 38.00.
Major resistance levels – $45.40, $46.80 and $50.00.
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