Key Takeaways:
- AVAX price started a major increase and cleared the $18.00 resistance.
- It is trading above a crucial bullish trend line with support at $18.85 on the daily chart.
- There could be a fresh rally unless a break below the $17.50 support.
Avalanche’s AVAX rallied over 15% in a week. The price faced rejection near $21.50, but dips might be limited below $17.50.
Avalanche’s AVAX Price Rally Is Far From Over
This past week, we saw a strong increase in AVAX price from the $14.00 support zone against the US Dollar. The price formed a base above the $15.50 level and started a new increase.
There was a steady upward move above the $16 and $18 resistance levels. A close above the $18 resistance and the 50-day simple moving average (blue) opened the doors for a strong increase toward the $20 resistance.
AVAX price daily chart | Source: AVAXUSD on TradingView.com
The price gained over 15% in the past few days, outperforming Ethereum and Bitcoin. Finally, the bears took a stand near the $21.50 resistance zone.
A high was formed near $21.56, and the price is now correcting gains. There was a sharp move below the $20 level. AVAX declined below the 23.6% Fib retracement level of the upward move from the $13.91 swing low to the $21.56 high.
Initial support is near the $19.00 level. The next major support is near a crucial bullish trend line at $18.85 on the daily chart. The main support is now forming near the $17.75 zone (a multi-touch region and a breakout zone). It is close to the 50% Fib retracement level of the upward move from the $13.91 swing low to the $21.56 high.
A close below $17.75 and the 50-day simple moving average (blue) may increase selling pressure. The price might dive toward the $15 support in the stated case.
Downside Break?
Conversely, AVAX’s price could start a new rally from $18. On the upside, immediate resistance is near the $20.20 level. The next major resistance is near the $21.00 level.
The key breakout zone is near the $21.50 level. A clear move above the $21.50 resistance zone could set the pace for another major rally. In the stated case, the price could test the $24.00 level. Any more gains might open the doors for a move toward the $25 resistance.
Overall, the AVAX price is still supported above the $17.75 support. If the bulls remain in action, it could rally again above the $21.20 resistance. If not, there could be a fresh bearish wave toward the $17.50 zone or even $15.50.
