Avalanche (AVAX) price surged over 15% and traded above $35.00. It is now consolidating gains and might aim for more upside.
Avalanche Price Retains Bullish Momentum
In the last technical analysis, we discussed the chances of a fresh upward movement in Avalanche if it clears the $30.00 handle. The bulls remained in action and pushed the price above $30.00. There was a steady increase above $32.00 and $33.50. The price gained over 15% and even spiked above $35.00, beating Bitcoin.
A multi-month high was formed at $35.72, and AVAX price is now consolidating gains. There is also a connecting bullish trend line forming with support at $30.00 on the daily chart.
Avalanche is trading well above the $32.00 level and the 50-day simple moving average (blue). The current price action suggests a small chance of a downside correction. If there is a pullback, AVAX might find support near the $32.50 level since it is close to the 23.6% Fib retracement level of the upward move from the $22.72 swing low to the $35.72 high.
If there is a downside below $32.50, AVAX price could extend losses and test the trend line support at $30.00. The 50% Fib retracement level of the upward move from the $22.72 swing low to the $35.72 high is also just below the trend line.
If the bulls fail to protect the $30.00 support, there might be a larger downside correction. In the stated case, the price might slide toward $27.70. The main area of interest for the bulls could be near the 50-day simple moving average (blue) at $25.00. Any more losses could send AVAX toward the $22.00 support.
Fresh Rally In AVAX?
After completing a short-term consolidation or correction, Avalanche could start a fresh increase. On the upside, immediate resistance is near the $35.00 level. The first major resistance is near the $36.20 zone.
A close above $36.20 could send AVAX price toward $38.00. In the stated case, the bulls may perhaps aim for an upside break toward the $40.00 level. The next key selling zone might be $42.00. Any more gains might open the doors for a move toward the $50.00 handle.
Overall, AVAX shows many bullish signs above the $30.00 level. The current price action is still bullish, and dips could be limited. Once the current consolidation or correction is complete, the price could resume its upside above $35.00.
