Avalanche Faces Resistance at $27 Amid Increased On-Chain Activity
Avalanche (AVAX) has seen a decline in trading volume by nearly 45%, with its price retesting the $27 mark. Over the past week, AVAX dropped by 16.34%, leading to a market cap of $11.16 billion. It remains the 12th largest cryptocurrency, yet risks a potential pullback to $20.
Avalanche Price Trend
- Current price trend shows a falling channel pattern, with a drop of over 50% in the last 55 days.
- Recent intraday recovery of 2.27% may indicate a possible comeback within the bearish pattern.
- A bullish divergence is seen in the daily RSI line, though EMA lines trigger a sell signal due to bearish crossovers.
- A potential recovery could retest the 200-day EMA at $34.34, indicating an upside of 28%.
Potential for V-shaped Reversal
- A recovery could lead to pre-market crash levels and create a V-shaped reversal.
- This might result in a breakout rally towards the previous swing at $54.
- If the downturn continues, support levels may be tested at $22 or $20.
On-Chain Activity
- A surge in on-chain activity is noted, exceeding 250,000 daily active addresses, the highest since May 2023.
- The increase hints at a potential rise to 300,000 active addresses last observed in January 2023.
- Growing demand for AVAX tokens is expected to improve its market value.
Social Sentiment
- Avalanche ranks third in real-world asset (RWA) tokens based on social mentions, with a boost of 3.15K mentions.
- This indicates a rising interest in RWA projects associated with Avalanche.
Resistance and Support Levels
- Strong resistance is anticipated between $27.38 and $28.17, with 11.41 million AVAX tokens held here.
- Current bullish momentum may push prices towards the $30 range, which holds 2.24 million AVAX tokens.
- Support ranges from $26.46 to $27.25, with 5.03 million AVAX tokens across 214.23K addresses.