#Avalanche #AVAX #cryptocurrency #technicalanalysis #onchainanalysis #IntoTheBlock #cryptoanalysis #tradestrategy
Investors and traders within the Avalanche (AVAX) market are currently sharpening their focus on three critical price levels that may dictate the short-term directional movement of this cryptocurrency. With insights from IntoTheBlock, a leading on-chain analysis platform, these levels are deemed pivotal for forecasting upcoming price trajectories. AVAX’s interaction with these price points could signal significant market moves, thereby guiding investors in their decision-making processes.
Initially, AVAX experienced a decent rally, touching a local high of $65.39 on March 18. However, the digital asset witnessed a substantial pullback of about 45%, with its price adjusting to approximately $36.72 in recent trading sessions. Highlighted by IntoTheBlock data, one key level to watch is the average purchase price of $31.72, where 866,000 addresses have previously bought around 14.49 million AVAX. This price acts as a crucial demand zone, potentially offering strong support if AVAX’s value approaches this level again. Conversely, a resistance zone at an average purchase price of $48.67, tied to about 22.75 million AVAX held by roughly 1.04 million addresses, could cap upward movements as these investors might aim to sell and break even.
Apart from these major support and resistance zones, a noteworthy observation from IntoTheBlock’s analysis includes a critical supply area around $36.77, suggesting a potential barrier for price ascension. Alongside these on-chain insights, technical analysis supports the notion of AVAX currently consolidating between $31.32 and $39.89. A breakout from this consolidation range could potentially propel the price by an estimated 32% towards another significant resistance level at about $48.85. Crypto analysts, including Ameba, foresee a test of the lower boundary of this range which may set the stage for the next upward movement.
Given this intricate web of support and resistance levels, investors are urged to maintain a cautious stance. Recognizing and monitoring these levels could be instrumental for crafting effective entry and exit strategies within the AVAX market. As market conditions continue to evolve, keeping a close eye on these pinpointed zones, alongside other technical and on-chain metrics, will be essential for navigating the potential volatility and capitalizing on the opportunities it may present.
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