In recent days, the price of Avalanche (AVAX) shows signs of a possible reversal. Let's explore the current dynamics and potential market levels.
AVAX Price Dynamics
According to the 4-hour chart, AVAX price faced resistance at $19.75, corresponding to the 200-day simple moving average. A bullish engulfing candle formed, giving a buy signal from the TD Sequential indicator. If the price breaks above $20.30, it may drive upward toward $21.00, with further potential towards $21.30. The support level at $19.85 will be critical, as a break below it could lead to a drop to $19.60.
Price Forecast and Analysis
In-depth analysis of AVAX price showed that the $19.00–$19.50 range forms a strong support level. Previous breakouts in this area led to a price increase up to $23.10. The recent breakthrough of $20.50 has confirmed a bearish trend, and the formation of consecutive descending highs may indicate the need for a correction. A breakout above $20.50 could alter the current dynamics, pushing the price towards $22.50.
Avalanche Flow Data
The Avalanche network recorded inflows of $41.75 million over the past day, indicating strong investor interest. This was the second-largest influx after Ethereum. Other networks also saw significant inflows, including Arbitrum and Flare. These data suggest that high interest in AVAX could support network operations and DeFi use, which may, in turn, support the price.
Current indicators suggest that AVAX is on the brink of a possible reversal. Attention to supporting levels and capital flows will be crucial in determining the future price dynamics.
