Aaryamann Shrivastava
FXStreet
- AVAX price rallied by another 7% in the last 24 hours after rising by 24% on January 11 to trade at $16.66.
- AVAX price is still maintaining the uptrend momentum as the MACD indicates a bearish crossover has not taken place yet.
- Should the bears take over the price action, a dip to $14.20 and below would invalidate the bullish thesis.
AVAX price has been following the broader market cues in marking significant recovery in a very short period of time, nearly invalidating the losses endured by the altcoin during the FTX collapse. Traders should also be wary of the excessive bullishness as corrections could counter the rise in price.
AVAX price climbs higher
AVAX price at the time of writing could be seen trading at $16.66, levels last noted more than two months ago. The cryptocurrency has been one of the fastest recovery altcoins, observing an almost 37% rally in the span of just three days.
If this momentum continues, AVAX price might be able to increase further and recover all the losses it faced in the last two months. To do the same, Avalanche needs to breach through the immediate resistance at $17.11 and flip $17.82 into a support floor.
This would enable the altcoin to jump further toward $19.78, reclaiming which would allow AVAX to initiate its recovery rally.
As per the Moving Average Convergence Divergence (MACD) indicator, the cryptocurrency is still maintaining the bullish momentum it has been noting for the last few days.
Although the signal line (red) almost crossed over the MACD line (blue) to form a bearish crossover, at the time of writing, the bullish crossover remains intact.
AVAX/USD 4-hour chart
Nevertheless, volatility in the market could dwindle the price and Avalanche could lose its growth. Traders should be wary of the same as if AVAX price declines below $15.96, it could tag the support level at $14.94.
Losing it would push the price to $14.20, which stands as the critical support, and a daily close below this level would invalidate the bullish thesis, leaving the altcoin vulnerable to a dip to $12.18.
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