Journalist
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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- AVAX showed strong bullish intent with its recent move above $23.
- A retest of a liquidity pool could provide a good buying opportunity with a good risk-reward ratioj.
Avalanche [AVAX] was selected as the platform on which the investment company Republic would launch it digital property. AMBCrypto’s analysis showed that the price had adopted a bearish bias on the lower time frames despite the news.
However, the past three days of price action showed the $20 zone having reversed into support. This was an interesting development as it meant that AVAX was poised for further gains.
The previous highs of 2023 were finally broken
Source: AVAX/USDT on TradingView
In February earlier this year, AVAX reached the $21.66 mark. By late January, the price had climbed even higher, albeit temporarily, to $22.79. Therefore, these are the two levels that were considered resistances that needed to be reversed to support.
On November 17, AVAX reached $24.69, although it did not break $21.66 or $22.79 in support. The market structure remained bullish on the one-day chart and the RSI hovered above 70. Together they indicated solid bullish momentum.
Furthermore, the move past the 2023 high was another sign of bullish intent.
On-Balance Volume (OBV) shot higher over the past six weeks due to intense buying pressure in the market. To the north, the next major resistance level was at $30. Therefore, a retest of the $19-$20 region could provide a good buying opportunity.
There was additional evidence that a sweep of the $20 was likely
Source: Hyblok
AMBCrypto’s analysis of Hyblock’s liquidation data showed that there were two interesting regions that AVAX should pay attention to. The first and minor was the $23.6 zone, which saw almost $600 million in liquidations, based on the last 30 days’ data.
Read Avalanche of [AVAX] Price prediction 2023-24
The other was the $19.4-$19.7 region, which has seen a large number of liquidations. It also joined the liquidity pool of the $19-$20 price action.
Therefore, an AVAX revision of the $19 area would provide a good buying opportunity. While it seemed ambitious, a move towards the weekly resistance at $30 remained likely.
