Avalanche Spikes on Growing Demand

Escalating by as much as 11% during the past week, Avalanche (AVAX) has reversed omnipresent bearish structures amid growing buying pressure.

Presently, AVAX is in a decisive position, which could either disrupt the chart or enhance it. It's worthy to note that Avalanche remains one of the stronger cryptocurrencies that has not fully retraced the 2024 bull market move, indicating great potential for an upside.

Daily time frame analysis

AVAXUSD - 1 Day Time Frame

AVAX has rejected the Monthly Open and failed to return with only a mild rejection. The popular cryptocurrency has significant potential for a breakout, potentially targeting the marked red area of resistance.

Moreover, when the 12/21 Moving Averages bands turn bullish, an impulsive move breaking out of the current price zone may take place, which could present a great entry opportunity.

2-hour time frame analysis

AVAXUSD - 2 Hour Time Frame

On the lower timeframes, price action indicates that the trend is shifting. If it begins a downtrend, a lower-risk buy would be at the Point Of Control, which marks the highest volume by Fixed Range Volume Profile.

A second solid entry would be at the support level, though there might be a risk of price filling in the False Breakout. If the price reaches this level, there is a possibility it could go lower.

• The most suitable low-risk entry would be at the breakout of the marked blue box, which is a potential scenario because since the Monthly Open, the price has spent very little time above it. Clear value forming above the Monthly Open may create a robust breakout targeting the marked resistance.