Avalanche was bearish in May, but over the weekend, AVAX was able to turn the £19.1 level from resistance to support. Furthermore, as demand crept into the market, Avalanche continued to rise toward £22.2.
Bitcoin exploded out of the £22.2k-£23.8k zone to trade at £24.6k the last day. On the way upward, strong resistance can be found at £25.5k and £27.7k. After two weeks of consolidation at £23.8k, it appeared like BTC might push higher toward the £28.5k-£30k range.
On the 12th of May, AVAX fell to £18.6 before rising to £29.2. However, during the last two weeks, the price has progressively declined, falling below the £19.1 support.
However, after plunging to £22.2k over the weekend, BTC bulls were able to rally from the range lows, and Avalanche was rising alongside the leading cryptocurrency on the price charts. AVAX turned £19.1 to support and was trading within the £22.2 resistance level at press time.
The previous week, this zone served as support, and if AVAX can move past it and cement it as support, another action higher toward £28.5 should be expected.
The RSI bounced back above the neutral 50 line, indicating that momentum is once again bearish.
It held above 60 for a few days, indicating that momentum was strong.
In the last few days, the OBV has also increased. The remain two levels on the OBV’s lower timeframes that buyers wish to see broken. This would point to strong buying pressure and consistent demand driving AVAX higher.
The trend for the coin on higher timeframes, such as D1, was bearish. However, before a possible continuation of the downtrend on higher timeframes, AVAX still had a lot of opportunity to the upside.
The bias has shifted to bullish on lower timeframes. Long positions targeting £25.9 and the £27.8-£28.5 resistance can be taken after a move above £22.2 and a retest as support.