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AVAX’s bearish outlook from the $50 price zone hit a critical price point, as it broke below the $33 support level. This came after the bullish defense at the level couldn’t stem the bearish momentum.
However, the recent uptick in volume along with the bullish price action resulted in a good 18% pump for AVAX. With the on-chart indicators also flashing positive signals, AVAX could go on a similar bullish run like it did in December 2023.
Bulls rally to halt selling pressure
AVAX buyers reacted to a key demand zone with an 18% pump to reverse the sustained selling pressure. This saw the native token of the Avalanche blockchain jump from $27 to $31 over the past day.
This pump was also buoyed by Avalanche Foundation’s announcement about including memecoins built on Avalanche blockchain in picks for its $100 million “Culture Catalyst” fund.
Looking at the chart indicators, the Relative Strength Index (RSI) rose sharply from the oversold zone and stood just above the neutral 50 mark. This marked a return to bullish sentiment by short term buyers.
Similarly, the Moving Average Convergence Divergence (MACD) indicator posted a bullish crossover along with green histogram bars above the zero mark.
Together with its price action, AVAX could produce double digit gains for short term traders. However, buyers must be wary of the $33 resistance level, as breaking above it is critical to the continuation of the bullish rally for buyers.
Entry level: $31 (Current Market Price)
Short term target: $35 (14% gains)
Long term target: $42 (35% gains)
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
