Avalanche (AVAX) is consolidating between $8.23 support and $9.75 resistance, forming a clear trading range.
According to the crypto analyst Ali Charts, buyers have repeatedly defended the lower boundary, while sellers cap gains near the top, creating a period of market indecision. Traders are advised to remain patient as short-term swings may be unpredictable inside this range.
Source: Ali Charts’ X Post
A decisive break out of the range that AVAX is currently in could determine the direction of the next big move. An increase above $9.75 might propel a bullish move, while a drop below $8.23 might indicate a continuation of the downtrend.
Until then, the asset is range-bound. Market participants are watching and waiting to act if AVAX breaks out of the range through a decisive move above or below these key technical levels.
Also Read: Avalanche (AVAX) Retests Key Support as Analyst Eyes $13 Breakout
Avalanche (AVAX) Technicals Point to V-Shaped Recovery
According to TradingView, AVAX displays a market recovering from a sharp decline to $7.73. Following a rapid V-shaped bounce, the price has entered a consolidation phase around $9.20.
Bollinger Bands are currently tightening, indicating a decrease in volatility and a typical setup for a potential breakout or breakdown as traders wait for a new catalyst.
Source: TradingView
Resistance is still present around the 200-period EMA at $9.62, which has consistently been the barrier for the price. At the same time, support is present at the lower BB at $8.79.
The price is trading around a cluster of moving averages with mixed signals on the candlestick chart. It is still neutral and requires a push above $9.30 to start a fresh bullish trend.
Momentum Indicators Point to Fading Bearish Strength
Currently, the RSI is at 54.54. It is indicating a neutral momentum with a bullish bias. It has been holding above the 50-midpoint ever since the rebound from the oversold drop on February 24th.
This indicates that the market is neither fully dominated by the buyers nor the sellers, as the RSI does not display the required velocity for a breakout.
Source: TradingView
The MACD indicates a conservative bullish signal, as the MACD line is above the signal line at 0.0407. The weakening green color of the histogram indicates a decline in upward momentum.
The distance between the two lines is narrowing, but it is still in positive territory, reflecting a slowing down of momentum as it approaches the previous resistance levels of $9.30.
Also Read: Avalanche (AVAX) Eyes $9.50 Resistance Amid $2 Billion Institutional Asset Inflow