If the $16.8-$17.5 support zone holds, Avalanche (AVAX) might give investors an opportunity. Three times so far, the support range has changed from being the primary demand zone, giving bulls an opportunity to rebound from a protracted price decline. At the time of writing, the fourth retest was available at a discount that may draw in more customers.
AVAX has fluctuated in price over the last two weeks between important supply and demand ranges ($17–$22). The Relative Strength Index (RSI) climbed around the oversold area on the 12-hour chart, indicating that the purchasing pressure is intensifying.
Investors Must be on Watch for Bullish Signals
Also, a MACD (moving average convergence divergence) bullish crossing may occur in the next hours or days to confirm the uptrend. A scenario like this can provide investorswith a powerful bullishcomeback signal. Investorswho are afraid of taking risks might hold off on taking long positions until a decline in the demand zone is retested. The supply zone between $21.0 and $22.5 will be objective and provide a potential 20% gain over the next days/weeks.
The significant obstacles at $18 and $20, though, are worth watching. If the bulls manage to overcome the selling pressure in the supply zone, they can potentially run into another significant resistance level of around $23.7.
AVAX’s Bullish Sentiment is Rising
AVAX’s open interest (OI) rate climbed dramatically as of writing time, according to Coinglass, after declining consistently over the previous week. The OI spike at the time of writing suggested a sizable demand for AVAX in the futures market. This may indicate a bullish trend.
If OI increases after AVAX rebound above $18, it would indicate heightened bullish momentum, which might drive the asset in the direction of the $22 supply region. But, if Bitcoin (BTC) falls below $23,000, recovery might not be conceivable. So, before acting, bulls can monitor the bullish MACD crossover (golden cross), OI, and BTC price activity.
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