At the time of writing, AVAX is priced at $14.70. It is currently trading near its immediate resistance level of $15. A breakthrough above $15 has the potential to push the altcoin to $15.80 and eventually $16.
The participation of buyers in the market is essential to create demand and accelerate the price of AVAX. On the downside, if AVAX fails to sustain the current price level, it may find support at $14 before trading below that level. The recent trading session showed a decrease in the amount of AVAX traded, indicating the dominance of sellers in the market.
Technical Analysis
Throughout May and part of April, AVAX experienced constant low buying pressure, indicating limited demand for the altcoin. The Relative Strength Index (RSI) is below the 40-mark, indicating that sellers have a greater presence than buyers at the time of writing.
In addition, the price of AVAX fell below the 20-Simple Moving Average (20-SMA) line, indicating that sellers are the driving force behind the market’s price momentum.
A significant move above the $15 price level would help AVAX break above the 20-SMA line, suggesting a potential momentum shift and possibly attracting more buying interest.
Although AVAX recently returned to the $14 price zone, there are no clear signs of buying strength according to technical indicators.
Moving Average Convergence Divergence (MACD), provides insights into price momentum. It only produces a green histogram, which does not necessarily mean buy signals at this point.
The Bollinger Bands, which show price volatility and fluctuations, remain wide, indicating that the possibility of price fluctuations cannot be ruled out in future trading sessions.
Featured Image From UnSplash, Charts From TradingView.com
