Avalanche price gains 17% in a week, could this be a dead cat bounce?


  • Avalanche price closes in on $20.00 after a 17% move from support at $15.00 in seven days.
  • Recovery to $20.00 is unlikely unless bulls annihilate resistance at the 200-day SMA.
  • Avalanche releases Core, a platform providing users a better way to connect to Web3.

Avalanche price is almost recouping gains to $20.00 after capitalizing on a widespread relief rally. With support at $15.00 intact, buyers steadied the push to higher levels, weakening the seller congestion zones at $16.00 and $17.00.

AVAX now sits on top of this ($17.00) resistance-turned-support while bulls deliberate on the next move to $20.00. However, overhead pressure at $18.00 may jeopardize the Avalanche price uptrend and increase the risk of a retracement.

Avalanche price bears seeking revenge

Avalanche price might change its technical outlook bullishly if buyers eke out an additional swing above the 200-day SMA (Simple Moving Average) (in purple), as shown on the eight-hour chart below.

However, that moving average reinforces a significant resistance at $18.00, likely to absorb the momentum behind AVAX. This area functioned as support, although only briefly in early September. Efforts to recapture the same level have been futile, thus the glaring possibility of another trend reversal.

AVAX/USD eight-hour chart

AVAX/USD eight-hour chart

Furthermore, the RSI (Relative Strength Index) may exacerbate the situation against the bulls if it taps into the overbought region. As a rule of thumb, prices tend to correct amid overbought conditions. In the case of Avalanche price, it would be prudent to watch out for RSI moving into and then exiting overbought. A reentry into the neutral zone from overbought levels is a good time to lock in gains while scanning for new short positions.

On the other hand, a break above the 200-day SMA could reaffirm the uptrend, allowing traders to tap more profitable long positions. For conservative traders, $22.00 is a potential take-profit target, but extremely bullish investors have the option of moving with AVAX’s trend to $30.00.

In other news, Avalanche has recently released a new platform called Core. Think of it as a command center for everything AVAX. Users can view their portfolios, execute transactions on-chain and access network stats on the same platform.

Core is a bridge between Avalanche and Web3 because users have the opportunity to find and link to dApps (decentralized applications) ecosystems.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC consolidates while ETH and XRP show some strength

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC consolidates while ETH and XRP show some strength

Bitcoin (BTC) consolidated between $94,000 and $100,000 in the last nine days. Ethereum (ETH) and Ripple (XRP) prices stood relatively stronger and have gained nearly 3% and 7%, respectively, this week.

More Cryptocurrencies News
Trump's US reciprocal tariffs pause fails to improve Bitcoin and crypto market outlook

Trump's US reciprocal tariffs pause fails to improve Bitcoin and crypto market outlook

Bitcoin (BTC) and top cryptos halted their declines following a pause in President Donald Trump's reciprocal tariff plans, which were originally scheduled to go live on Thursday.

More Cryptocurrencies News
Ripple vs SEC battle nears end as the regulator acknowledges Grayscale XRP ETF filing

Ripple vs SEC battle nears end as the regulator acknowledges Grayscale XRP ETF filing

Ripple's XRP is up 4% in the early hours of Friday following the Securities and Exchange Commission (SEC) acknowledgment of Grayscale's 19b-4 filing to convert its XRP Trust to an ETF.

More Ripple News
200,000 New Investors Buy Ripple (XRP) 30-Days After Gensler’s Farewell: What Next for Stellar (XLM)?

200,000 New Investors Buy Ripple (XRP) 30-Days After Gensler’s Farewell: What Next for Stellar (XLM)?

Ripple (XRP) price consolidated around $2.40 on Thursday, up 11% since Monday, technical indicators suggest Stellar (XLM) has joined the rally.

More Ripple News
Bitcoin: BTC consolidates before a big move

Bitcoin: BTC consolidates before a big move

Bitcoin's (BTC) price has been consolidating between $94,000 and $100,000 for the last ten days, and, when writing on Friday, it hovers around $97,000. Despite this consolidation, US Bitcoin spot Exchange Traded Funds (ETFs) data recorded a total net outflow of $650.80 million until Thursday, hinting signs of weakness among institutional investors.

Read full analysis
The Best Brokers of the Year

The Best Brokers of the Year

SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.

Read More

BTC

ETH

XRP