What to know:
- AVAX is consolidating near the $10.05 resistance level
- RSI remains neutral, indicating stable momentum
- Price holds above key support near $9.05
Avalanche (AVAX) is attracting renewed interest as market trends indicate a potential price increase. Avalanche shows tightening price action alongside balanced momentum and strengthening network activity, signalling a potential breakout ahead. At press time, the coin is trading at $9.35 with a decrease of around 1% over the past 24 hours.
Charts Indicate Tight Consolidation Near Resistance
TradingView shows that AVAX is presently trading within a tight range of $9.05 support and $10.05 resistance. This pattern suggests continued consolidation, with declining volatility suggesting a breakout may soon occur.
The 50-day and 200-day moving averages are both above the current price, indicating that the market may be moving toward a bearish trend.
However, the difference between the moving averages and the current price is decreasing, which is a positive signal. The relative strength index (RSI) indicates that buying and selling pressure have balanced around the 50 level. If AVAX breaks through the $10.05 level, it will likely push toward $12.
Also Read: Avalanche Explodes Toward $55 as Bitwise ETF Sparks Rally Momentum
Avalanche Tweet Points To Growing Network Utilization
According to a recent Avalanche tweet, new businesses on the network create additional fee revenue, will burn the $AVAX token, and will bring in new users.
As more businesses are using the network, the ecosystem’s fundamentals are also improving because the number of users on the network increases the overall utility of the AVAX token. This type of improvement often leads to positive sentiment in the marketplace.
At present, the Avalanche price is at a point where it is in consolidation and could break out to either side of its current range very soon.
Although the technical indicators are neutral, both the improvement in fundamentals (e.g., growth) and the steady price movements support the idea that a breakout above resistance will change momentum to be more positive for bulls in the near-term.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Avalanche Shows Strength: Can AVAX Trigger a Major Breakout Above $25?
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