Why AVAX might rally by another 15%

CRYPTO_NEWS AVAX

Avalanche [AVAX] noted large gains on the token’s price chart in the past two weeks. Avalanche was able to defend the former range lows and has now flipped the $11 level to support.

 

News of SnowTrace shutting down Etherscan-powered explorer service meant users would have to take some steps to transition to alternate tools. Stars Arena, a project on Avalanche, was also in the news after announcing that their CEO has stepped down. This came after a hack on 7 October that saw a loss of nearly $3 million.

 

AVAX is set to run higher after a positive reaction from the former resistance

 

AVAX traded within a range (orange) that extended from $8.72-$10.92 since late August. In the past two weeks, the lows of this range at $8.7 were tested once more and were defended. This, combined with Bitcoin’s [BTC] rally from $26.7k, provided the impetus for prices to sail past the $11 resistance.

 

At the time of writing the market structure on the one-day chart was bullish. The RSI reflected that upward momentum was firm with a reading of 66. The OBV has also trended strongly upward in the past two weeks to signal a large buying volume.

 

The breakout occurred on high trading volume. Additionally, the $11 and $11.6 were retested as support in the lower timeframes. This indicated that AVAX was likely to advance to the next major resistance at $13.9 and possibly higher.

 

The bulls could keep the party going if they manage to breach the $14 wall

 

The liquidation levels heatmap above noted that a large amount of liquidity was present just below the $14 mark. This lined up well with the HTF resistance at $13.9. Moreover, the next major liquidity pools lie at $14.5 and $16.15.

 

Liquidity attracts prices, therefore AVAX would be likely to climb to these targets if the buying pressure was sustained. Traders could use the $13.9, $14.5, and $16.15 levels to book profits at and re-enter long positions.

 

Source : AMBCrypto / November 3, 2023

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