Avax Coin Gains Momentum, How Long It May Remain Bullish?

• The Avax coin price has surged by over 7% in a week but declined by over 43% in a year.
• The volume has seen a surge as the volume surpassed the 10-day average volume. 
• Avax coin is currently trading at $9.72.

The Avax coin price is showing some strength at the lower level. The coin price in the current trading session showed selling pressure at the beginning of the day. As the day progressed the price showed an excellent recovery from the lower level and formed an engulfing candle on the daily chart. The Avax coin price is halting at the $9.84 level for the third trading day. It shows that there are some strong sellers present at that level.

The Avax coin price has melted down the gain it made in 2021. At the beginning of the year 2022, the price started declining and the coin has melted over 93% till now. The selling took a halt in mid-2022 and the coin has been consolidating at the lower level since then. 

Avax coin’s price has made multiple attempts to recover but failed to do so. It surged by over 7% in a week which indicates that the price is gaining momentum. However, the Avax token price has declined by over 43% in a year, which indicates that the seller has dominated the price throughout the year. 

Let’s Have a Look at the Avax Chart 

Avax in its downward journey had made various demand and supply zones. The price has also formed a downward-sloping trendline on the daily chart, which is currently present near the $10.70 level. The nearest Resistance level for the price is present at the $10.13 level, marked as R1. The other resistance levels are present at $11.20, $12.18, and $16.06 level and are marked as R2, R3, and  R4 on the chart.

The Avax coin price has taken strong support from the level of $8.58 and the next support is present near the level of $6.98. Both the levels are drawn as S1 and S2 on the chart.

Are All Indicators Indicating the Same Thing? 

Exponential Moving Average

If we observe that both the 50-day and 100-day Exponential Moving Average is providing great liquidity to the price. The slope of the EMA is steep and it is considered a good bearish signal. EMAs are providing resistance to the price and are present near the level of $9.73 and $11.42.

Relative Strength Index

If we closely observe the Relative Strength Index, the RSI has created a divergence with the price. It seems that the price is ready to fly from here. The Relative Strength Index is now placed above 50, which shows that the bulls are gaining momentum.

Conclusion

Avax coin price is showing some strength at the lower level and the RSI indicates that the buyers are gaining momentum. If the price breaks the resistance level of $10.13,  the price will move forward to $11.20 and $12.18 level. If the price faces rejection and breaks the support level of $8.58, it can try to achieve the level of $6.98.

Technical Level

Resistance – $10.13 and $11.2

Support – $8.58 and $6.98

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.