AVAX price is gaining momentum above the $26.50 resistance. Avalanche could rally further if there is a clear move above the $27.75 resistance zone.
- The AVAX share price is moving up from the support zone at $24.70 against the US dollar.
- The price remains above $26.50 and the 100-hour basic moving average.
- On the hourly chart of the AVAX/USD currency pair, there was a breakout of the key downtrend line with resistance at USD 26.50 (data source: Kraken).
- The pair could continue to rally if it holds above the $26.00 and $25.50 support levels.
AVAX price is set to rise
After a steady decline, AVAX Avalanche found support near the $22.00 zone. A support base formed above $22.00 and the price started a modern rally, similar to Bitcoin and Ethereum.
The price is up over 7% and has broken multiple obstacles around $25.00. A key bearish trendline with resistance at $26.50 on the hourly AVAX/USD chart has been broken. The 76.4% Fibonacci retracement level of the downward move from the $27.17 high to the $24.72 low has been breached.
The pair even broke through the $27.00 resistance to enter the positive zone. AVAX price is now trading above $26.50 and the 100-hour basic moving average.
On the upside, immediate resistance is near $27.75. The next major resistance forms near the $28.70 zone or the 1.618 Fibonacci extension level of the downside move from the $27.17 high to $24.72 low. If there is an upside break above $28.70, the price could accelerate higher. In this case, the price could continue to rise towards $30.00 or even $32.00.
Are dives safe and sound in the event of an avalanche?
If AVAX fails to sustain above $27.75 or $28.70, a downside correction could begin. Immediate support on the downside is near $26.50.
Major support is near the $26.00 zone and the 100-day basic moving average (4 hours). A break below the $26.00 level could open the door for a drop towards $24.70. The next major support is near the $22.50 level.
Technical indicators
Hourly MACD – MACD for the AVAX/USD pair is gaining momentum in the growth zone.
Hourly RSI (Relative Strength Index) – The RSI for the AVAX/USD pair is currently above the 50 level.
Major support levels – USD 26.50 and USD 26.00.
Major resistance levels – $27.75 and $27.70.
