Avalanche (AVAX) Poised for Breakout Above $126.03 Resistance

Avalanche (AVAX) is consolidating below $126 resistance, with historical patterns indicating a potential 414% price surge to $243 if it breaks through. Strong support zones reinforce AVAX's upward momentum, with consolidation signaling preparation for a decisive move. AVAX faces key resistance at $126.03, and a move above this level could trigger a strong rally.

In the ever-evolving world of cryptocurrencies, Avalanche (AVAX) has been making waves as it consolidates below the crucial $126 resistance level. With historical price patterns indicating a potential 414% price surge to $243, this decentralized platform is garnering attention from investors and traders alike.

AVAX, currently trading at around $36.72, has experienced a bearish trend in recent months. Rejections at the $40-$42 resistance level have become a recurring theme, with open interest declining alongside price drops. This reduction in market participation and trader confidence suggests that long position holders are exiting the market, adding downward pressure to AVAX's price [1].

However, strong support zones reinforce AVAX's upward momentum. Historical data from the Volume Profile Visible Range (VPVR) reveals a significant accumulation zone around $27, which has acted as a crucial support level in the past. This level represents a previous area of substantial buying interest, and market participants are closely monitoring it as a potential floor for the current price action [1].

The Relative Strength Index (RSI) for AVAX currently stands at around 35, approaching the oversold threshold of 30. While this reading suggests that selling pressure may be exhausted, the consistent presence below the neutral 50-level aligns with the overall bearish market structure [1].

Short positions are on the rise compared to longs in the AVAX/USDT trading pair, indicating that traders are betting on further price declines. However, the potential for a significant price surge if AVAX breaks through the $126 resistance level cannot be ignored [1].

In conclusion, Avalanche (AVAX) is currently consolidating below the crucial $126 resistance level, with historical patterns suggesting a potential 414% price surge to $243 if it breaks through. Strong support zones around $27 and a decline in open interest suggest that the current price action may be preparing for a decisive move. As always, investors and traders should exercise caution and conduct their own research before making any investment decisions.

References:

[1] Blockonomi. (2023, February 28). Avalanche (AVAX) Price, Trading Volume, Patterns Suggest Key Support at $27. https://blockonomi.com/avalanche-avax-price-trading-volume-patterns-suggest-key-support-at-27/