Avalanche Price Next In Line To Hit Record Highs If This Crucial Barrier Breaks
- Avalanche price set to close a day in the green following 36% growth in 24 hours.
- AVAX could be oversold, but the MACD affirms the increasing bulls’ influence.
Avalanche’s yielding price action seems far from over despite the majestic uplift from last month’s lows of $9.25. Since bulls took control, no stone has been left unturned. Over 245% accrued gains in less than three weeks seem to have kept investors hooked.
Avalanche Price rally To $62 Requires Break Above $35 Resistance
AVAX is teetering at $31 at the time of writing, following a minor trend reversal from the hurdle encountered at $35. Buyer congestion at $35 keeps the uptrend on track, allowing bulls to focus only on the recovery mission.
In February, Avalanche achieved an all-time high of $62.75 but trimmed gains $22. For more than two months, the token pivoted between the support at $22 and the stubborn resistance at $40. However, in May, the selloff in the cryptocurrency market resulted in another dip that only found fordable backing at $9.25 in July.
Hence, the region between $35 and $40 remains one of the most seller congested. Trading above this zone could quickly catapult Avalanche to the all-time high. However, holders may try to break even on their positions, dampening the tailwind.
AVAX/USD Daily Chart
The Relative Strength Index (RSI) is highly overbought, but AVAX keeps trending upward, seemingly unbothered. This shows that the token is in a solo bull cycle likely to continue in the near term.
A comprehensive look at the daily chart reveals a massively bullish Moving Average Convergence Divergence (MACD). The buy signal flashed in March could be the reason behind the continuous northbound movement. The MACD has settled above the mean line, while the wide gap between the 12-day EMA and the 26-day EMA drives the bullish narrative further.
Increased development activity is often a bullish signal, and according to Santiment, Avalanche has seen a surge in the last few days, overshadowing a recent high posted on August 5. Currently, development activity on the protocol holds at 1.85 compared to a 30-day low with a ratio of 1.04.
Avalanche Development Activity
Realize that closing the day above $35 is a requirement for continued price action toward $62.75. Otherwise, overhead pressure will start rising. A correction under $30 will test the 200-day SMA at $23 before extending to the next provisional support at $17.