- Avalanche was in a long-term downtrend, but seemed likely to reach the $30 level soon.
- Sustainable gains beyond this region may be difficult and could experience a phase of retracement and consolidation.
Avalanche (AVAX) has been trending upwards in the lower time frames. Its price drop to $20 was followed by a consolidation phase that lasted almost two weeks.
A recent report highlighted the bullish enthusiasm behind the token.
Since August 16, the Avalanche cryptocurrency has increased by just over 30%. Technical analysis has shown that these gains could continue for a few more days.
Two Series of Fibonacci Levels to Tell the Story of AVAX Price Action
Source: AVAX/USDT on TradingView
The price decline in May and June from $41.8 to $23.51 was used to plot one set of Fibonacci levels (yellow) while the decline from $33 to $17.29 was used to plot another (blue).
The most recent decline highlighted $29.64 as a key resistance level.
This coincided with an area from which the Avalanche crypto bounced in April, but turned into resistance in June. Beyond that, the $37.5 area is also an important resistance zone.
The price move above $24 after testing the 23.6% extension level was encouraging in the short term. While it promises a move towards the $30 resistance, traders should limit any further bullish anticipation.
The CMF was above +0.05, indicating strong buying pressure. The bullish momentum was reflected in the daily RSI and the price movement above the moving averages.
Evidence Supports $30 Target for Crypto Avalanche
Source: Hyblock Capital
Is your portfolio green? Discover the AVAX profit calculator
The liquidation heatmap showed a concentration of liquidity just below $28 and around the $30 level. Combined with the momentum and demand for AVAX, it was likely that the price would move higher.
Magnetic liquidity zones attract prices, and if Bitcoin (BTC) decides to break above $66,000, Avalanche could also see a sustained rise due to the bullish sentiment across the market.
Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and represents the opinion of the author only.
