Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.
- The Avalanche has performed well on the price chart over the past six weeks.
- It was expected that the strong upward trend would continue.
Avalanche (AVAX) retested an important Fibonacci retracement level and hit a higher level on the price chart. This meant the bulls had the upper hand and then there was a move to $30. Avalanche has also seen a significant increase in NFT sales.
The Dokyo Collection generated over $1.4 million in transaction volume, propelling Avalanche to its highest NFT sale in three months. Confidence in the asset has increased along with the price action.
Fibonacci extension levels presented mouth-watering targets for bulls.
Source: AVAX/USDT on TradingView
The $19-$20.7 zone is highlighted in green because it was a previous resistance zone. Although it moved to support in mid-November, some volatility was expected within this zone as it is likely to move in search of liquidity on lower time frames.
That decline occurred on November 21, but the decline was a retest of the 61.8% Fibonacci retracement level (light yellow). Since then, AVAX has risen above $20.
Therefore, looking at the price action on the 1-day chart, traders have every reason to believe that a rise to $24.6 is expected.
RSI has slowed over the past two weeks, showing signs of waning bullish momentum. However, the market structure remained strong. Additionally, on-balance trading volume did not decrease significantly, suggesting that sales volume was not dominant.
Clearance levels indicate that bears over $24 were relatively rare on the land.
Source: Hiblock
AMBCrypto’s analysis of the liquidation level heatmap shows that $18.7 and $23.1 are the next areas of interest.
Although it had the highest number of expected liquidations, a drop to $18.7 is highly unlikely given recent price movements. Expected liquidation amounts are thinning above the $23-$24 area.
Read Avalanche (AVAX) Price Prediction for 2023-24
Additionally, the $22 level has served as resistance since September 2022. Therefore, a break above this level was a sign of strong bullish intent.
The next notable resistance was $30.8 and there were very few resistance levels between $24 and $30.