AVAX Price Approaches $50 Resistance Level Amid Bullish Momentum
Avalanche (AVAX) approaches the $50 resistance level, with bullish momentum suggesting a potential breakout. A successful move beyond this threshold could trigger a significant rally, attracting trader interest.
Bullish Momentum Builds: Can AVAX Break Through?
On the 4-hour chart, AVAX is above the 100-day Simple Moving Average (SMA), indicating a strong bullish trajectory. This suggests that positive sentiment is driving momentum as Avalanche targets the critical $50 resistance level.
The 4-hour Relative Strength Index (RSI) has risen above 70%, signaling renewed buying pressure and reflecting bullish movement in the market. Continued upward movement may indicate strong demand and potential price growth.
The daily chart also shows a bullish candlestick formation as the price approaches $50. Its position above the SMA reinforces the positive trend, enhancing market confidence for continued rally prospects.
The daily RSI recently reached 75%, indicating overbought conditions. While this suggests strong buying pressure, it may also imply that the asset is overheating.
Breakout Or Pullback On The Horizon?
As Avalanche nears the $50 resistance level, two scenarios are possible: a breakout or a pullback. If bullish momentum continues, AVAX could exceed $50, potentially targeting the $65 resistance level.
If the $50 resistance holds, a pullback may occur, testing the $42 support level. A drop below this level could lead to further downside, pushing AVAX toward additional support zones.
