Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- AVAX has a strong bullish structure on the four-hour and daily charts.
- A move to $13.9 would likely happen quickly, and it was possible that a rally could push past $15 in the coming weeks.
Avalanche [AVAX] recorded big gains on the token’s price chart over the past two weeks. Avalanche was able to defend the previous range lows and has now turned around the $11 level for support.
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The news that SnowTrace would be shutting down the Etherscan-powered Explorer service meant that users had to take some steps to switch to alternative tools. Stars Arena, a project on Avalanche, was also in the news after announcing that their CEO has stepped down. This came after a hack on October 7 that resulted in a loss of almost $3 million.
AVAX is expected to move higher after a positive response from the former resistance
Source: AVAX/USDT on TradingView
AVAX has been trading within a range (orange) of $8.72-$10.92 since late August. Over the past two weeks, the lows of this $8.7 range have been tested and defended once again. This, combined with that of Bitcoin [BTC] rally from $26.7k, providing the impetus for prices to sail past the $11 resistance.
At the time of writing, the market structure on the one-day chart was bullish. The RSI reflected that upside momentum was solid at a reading of 66. The OBV also showed a strong uptrend over the past two weeks, indicating heavy buying volume.
The breakout occurred amid high trading volume. Moreover, the $11 and $11.6 were retested as support on the lower time frames. This indicated that AVAX was likely to move towards the next major resistance at $13.9 and possibly higher.
How much is 1, 10 or 100 AVAX worth today?
The bulls could keep the party going if they manage to break the $14 wall
Source: Hyblok
The heatmap of liquidation levels above shows that there was a large amount of liquidity present just below $14. This aligned well with the HTF resistance at $13.9. Additionally, the next major liquidity pools are at $14.5 and $16.15.
Liquidity attracts prices and therefore AVAX could likely rise towards these targets if buying pressure continues. Traders could use the $13.9, $14.5, and $16.15 levels to book profits on long positions and then retake them.
