Avalanche Tests Key Support Level at $20 After 55% Surge
Avalanche (AVAX) is testing the $20 support level after a 55% surge from early April lows. This level is crucial for maintaining bullish momentum.
Current challenges include:
- Macroeconomic tensions and global market volatility affecting investor sentiment
- Continued pressure on altcoins like Avalanche due to rising geopolitical uncertainty and interest rate concerns
Analyst Ali Martinez indicates that AVAX is bouncing off its 200-day Simple Moving Average (SMA) on the 4-hour chart, which could signal a pivot point for bulls. An increase in trading volume and a confirmed break above short-term resistance could reignite AVAX’s upward trend.
Key points about AVAX's price action:
- Currently trading at $19.98, still below significant moving averages (200-day SMA at $29.80 and EMA at $26.30)
- Resistance noted at $22–$23, with sellers currently in control
- Volume is decreasing, indicating weakening momentum
- Consolidation range between $18 and $23; failure to hold $20 may lead to a drop to March lows near $16
- A breakout above $26 could attract bullish interest and indicate a potential trend reversal
The next few days are critical in determining AVAX’s trajectory amid ongoing macroeconomic uncertainties.
