The alt market has seen gradual recoveries within the previous week as bulls amplified their strength. Avalanche secured a decisive closing beyond its exponential moving average ribbons on the 4hr chart. However, sellers have restricted the altcoin’s peaks as the 7-week trend-line resistance curbed buying rallies. A massive closing beneath the prevailing pattern might trigger a short-term decline in the upcoming days. While publishing this content, AVAX changed hands near $20.02.
Avalanche 4Hr Timeframe
Avalanche lost over 58% since May 23, diving towards ten-month lows on June 19. Buyers have defended the $15.95 mark while triggering two upward channel recoveries within the past few weeks. AVAX’s price has struggled to secure trend-altering rallies as sellers resurged around the trend-line resistance.
This hurdle has offered sellers rebounding opportunities for more than three weeks. Buyers dominate the near-term trend as the exponential moving average ribbons remained northbound. Nevertheless, the price actions have neared the trend-line resistance and the EMA200. So, potential reversals from $20 might lead to a pullback.
A decisive close beneath the upward channel might propel the alt to retest $19.1 in the upcoming sessions. A closing beneath this mark would only confirm the selling bias. Bulls need a massive break past $20 and the trend-line resistance to shift this narrative.
Reasoning
The RSI (Relative Strength Index) has supported the latest buying momentum surge as it maintained its spot beyond the midline. A continued move beyond the support at 56 might bolster buyers to prevent declines beneath the Exponential Moving Average ribbons.
The OBV (on-balance volume) also conformed to surged buying strength within the previous four days. However, the MACD (Moving Average Convergence Divergence) recorded a bearish cross and confirmed buying momentum ease. Maintaining the southbound tendencies beneath the zero level might halt potential buying comebacks.
Final Thought
Avalanche (AVAX) traded on thin ice during this publication. A decline beneath the pattern might trigger amplified selling. That would see the target remaining, as mentioned above. Nevertheless, a broad market outlook plus on-chain activities remain crucial to ensure profitable undertakings.