The crypto market experienced a notable pullback yesterday, with many assets retreating to lower levels. Avalanche (AVAX) suffered a 15% decline from its recent local top of $28.01.
This retracement has caught the attention of analysts and investors, who now view it as a strategic entry point for the asset. AVAX is currently testing a key support level that, if respected, could pave the way for further gains. Analysts suggest that this level is crucial for maintaining the uptrend and potentially leading to more upside for the Layer-1 blockchain.
If the support holds, it could signal a bullish continuation, with the price possibly retesting previous highs and moving beyond. However, the asset may see further declines or sideways movement if the support fails. The coming days will be critical in determining whether AVAX can capitalize on this opportunity and resume its upward momentum.
AVAX Testing Crucial Demand
Avalanche is testing crucial demand at $23, placing it in a key reaction zone that could trigger a significant price impulse in the coming weeks. Both traders and investors are closely watching this level, which represents a pivotal point for AVAX’s next move.
Top analyst and investor Posty recently shared his analysis on X, highlighting the importance of this $23 retest. He suggests that this level offers an excellent entry point for those looking to capitalize on a potential upside.
Posty also notes that for those who prefer a more conservative approach, waiting for an entry above $32 could also be a smart move, providing additional confirmation of a bullish trend.
If this retest holds, the price could see a strong upward movement, with the potential for significant gains. Historically, Avalanche has shown the ability to rebound aggressively after such corrections, leading to rapid price increases.
This potential for a bullish breakout has generated considerable interest as investors seek to position themselves ahead of the next market move. The coming days will be crucial in determining whether the price can maintain its bullish structure and capitalize on this opportunity to push toward higher prices.
$32 After Testing Support?
Avalanche is currently trading at $24.54 after successfully tagging and holding its 4-hour 200 moving average, a key support level that the asset lost in July but has now reclaimed and tested over the past week.
This moving average is a crucial indicator of price strength and has historically supported AVAX. The successful retest of this level signals a potential continuation of the bullish trend, but the price needs to maintain its position above this support to sustain upward momentum.
For the price to continue its upward trajectory, it must hold above this critical 4-hour 200 moving average and challenge the local top at $28.01. Breaking past this level would confirm the bullish continuation and could lead to further gains.
However, if AVAX fails to maintain its support at the 4-hour 200 moving average, the next logical demand zone to test would be around $22.8. This level would likely serve as the next line of defense for bulls, making it a key area to watch in the event of a price pullback.
Featured image from Dall-E, chart from TradingView
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