While Avalanche’s AVAX cryptocurrency is relatively young, it exhibits impressive technical parameters. In terms of structures, the price has been in a bullish trend for a prolonged period, which means that AVAX is registering higher highs and thus making higher lows.
AVAXUSD (1 Week Time Frame)
August 2020 – August 2023
The price flow, which is also bullish, contributes significantly to such price movements as seen in the chart above. The bullish movement is forming at a rate that is several times higher than the bearish one and so we it can be defined as impulsive.
This phenomenon occurs because of the high volumes transacted by the institutions which trade this cryptocurrency, which thus indicates the direction of the price.
Combining market structures with price flow readings offers traders and investors key information on potential price movements during the next impulsive move
Currently, AVAX is priced by the support zone in which the so-called equal lows have been formed. This has the effect of building liquidity from retail traders who are buying early and placing their stop loss orders below this zone.
Our analytical team project two potential scenarios for AVAX. The bullish structure could potentially continue to be prevalent, but the coin’s price can also fall below the support zone in the short term due to liquidity withdrawal.
The key factor in price development will be if AVAX manages to avoid closing below the higher low on the weekly timeframe. This would indicate that the price could be moving towards a deeper correction.
A BIT about Avalanche
Avalanche is relatively a new player on the cryptocurrency market. The project has quickly garnered attention with its innovative technology and promising ecosystem.
A current circulating supply of 353 million tokens with a price-tag of a bit over $10, the market capitalization of AVAX surpasses $3.5 billion. This makes it the 20th largest cryptocurrency on the market, surpassing Chainlink (LINK), Stellar (XLM) and Binance USD (BUSD) in market cap.