Avalanche Bulls Are Just Getting Started

AVAX price increased by over 50% and climbed above $22.50. The price could correct lower, but there could be more upside above $25.

• AVAX price is showing some positive signs above the $20 level against the US Dollar.
• The price is trading above $22 and the 100 simple moving average (4-hours).
• A key bullish trendline is forming with support near $20.50 on the 4-hour chart of AVAX/USD (data source from Kraken).
• The pair could continue to rise if there is a clear move above the $24.50 and $25.00 resistance levels.

AVAX price doubles in value in a few days

After forming a base above the $10.00 level, Avalanche’s AVAX began a major rally, outperforming Bitcoin And Ethereum. There was a clear move above the $15 and $20 resistance levels.

The price has gained more than 50% over the past few days and even broke the $22.50 resistance. A new multi-week high formed near $24.70 and the price is now consolidating its gains. There was a slight decline below the $22.50 level.

The price fell below the 23.6% Fib retracement level of the upward move from the $15.59 low to $24.70 high. However, the bulls were active above $20.00.

AVAX price is now trading above $22.00 and the 100 simple moving average (4-hours). There is also a key bullish trendline forming with support near $20.50 on the 4-hour chart of the AVAX/USD pair. On the upside, immediate resistance lies near the $24.50 area.

Source: AVAXUSD on TradingView.com

The next major resistance forms near the $25.00 area. If there is an upside breakout above the $24.50 and $25.00 levels, the price could surge over 20%. In the mentioned case, the price could increase steadily up to the $30 level.

Limited dips in avalanche?

If AVAX price fails to continue above the $24.50 or $25.00 levels, it could trigger a downward correction. Immediate downside support is near the $22.50 level.

The main support lies near the $20.50 area. A downside break below the $20.50 level could open the door for a further decline towards $18. The next major support is near the $15.50 level.

Technical indicators

4-hour MACD – The MACD for AVAX/USD is gaining momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for AVAX/USD is now above the 50 level.

Key support levels – $22.50 and $20.50.

Major resistance levels – $24.50, $25.00 and $30.00.