AVAX Breaches $13 Barrier With 16% Rally – What’s The Next Price Level To Watch?

Christian Encila

1 year ago

3 mins read

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Avalanche’s native cryptocurrency, AVAX, experienced a significant breakthrough when it successfully surpassed a crucial barrier at $13. This obstacle had proven to be a significant challenge for AVAX bulls in the previous weeks, hindering their upward momentum.

However, drawing inspiration from Bitcoin’s impressive surge past the $30,000 mark, AVAX followed suit and decisively shattered this barrier. This remarkable achievement injected renewed optimism into the AVAX community and set the stage for potential further gains.

As the cryptocurrency world buzzes with anticipation, one cannot help but wonder: Will Avalanche’s AVAX continue its upward trajectory, surpassing even loftier milestones?

Indicators Suggest Potential Resistance For AVAX

AVAX registered a notable 6.3% surge within a 24-hour period, propelling its price to $13.19 according to CoinGecko.

AVAX price all glowing in green today. Source: Coingecko

Additionally, the crypto exhibited an impressive 16% surge over the past seven days, signaling growing momentum. However, despite these positive developments, AVAX still faces potential hurdles in its upward trajectory.

According to the latest AVAX price report, the Relative Strength Index (RSI), a widely used indicator that tracks the balance between buying and selling pressure, has consistently remained below the 50-mark since April.

AVAX market cap currently at $4.5 billion. Chart: TradingView.com

This suggests that selling pressure has dominated the market during this period. While Avalanche managed to overcome the earlier roadblock, the lingering presence of the RSI below 50 may indicate the potential for resistance as bullish trends encounter selling pressure.

On the other hand, the coin’s On Balance Volume (OBV) indicator initially experienced a decline but has since shown signs of recovery. The OBV measures the cumulative volume of AVAX traded over a given period, providing insights into the demand for the cryptocurrency.

AVAX price maintaining an upward trajectory in the last week. Source: CoinMarketCap

The recovery in OBV indicates an improvement in demand for AVAX, which is a positive sign for its future performance.

However, it is important to note that as the RSI approaches the 50-mark, it may act as a crucial resistance level for AVAX bulls.

The RSI’s proximity to this threshold suggests that a significant increase in buying pressure will be necessary to overcome potential selling pressure and sustain AVAX’s upward momentum.

Bitcoin’s Resilience And Its Influence On The Altcoin Market

While Avalanche’s AVAX has been making noteworthy strides, the broader cryptocurrency market has been closely watching Bitcoin’s performance as it defies expectations and regulatory pressures.

Bitcoin has displayed remarkable resilience in the face of ongoing regulatory challenges and has continued to captivate investors with its surprising rally.

Source: Coingecko

Bitcoin’s performance often sets the tone for the overall market sentiment. When Bitcoin experiences significant price movements, it tends to impact the value of altcoins, including AVAX.

Positive movements in Bitcoin often lead to increased investor confidence, which in turn fuels the demand for altcoins. Conversely, negative price movements or regulatory concerns surrounding Bitcoin can have a spillover effect on altcoins, dampening investor sentiment and leading to a broader market correction.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Conserve Energy Future

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.