Avalanche Shows Bullishness; Can AVAX Move Out of Consolidation?
Avalanche is a relatively new blockchain with limited liquidity available in the markets, and this small availability makes it easier for buyers to manipulate the price trend. Of its total market capitalization of $6,726,270,126, only 39% of its 720 million tokens are available for trades. Of this small volume, there are multiple staking and holding wallets. The best way to neutralize such impacts on AVAX price is to increase the liquidity available in the markets.
Offering services in smart contracts and similar domains as Ethereum, AVAX has established itself strongly amongst its competitors. Trading volume for the AVAX token has also improved, creating an ambient scenario for a breakout. However, transactional volumes have remained in a narrow zone during this time.
Avalanche token has shown its capability to tackle the downtrend resistive movement emerging from the present two-week consolidation zone. $26 is the resistance, while $19 becomes the support zone for the tokens. Check out Avalanche price prediction to know if the token will go towards resistance or support level.
The Avalanche price action showcases the dominance of buyers and sellers at different phases of the price progression. Resistance for AVAX has jumped towards $30, while the consolidation zone created a short-term resistance at $25. The Avalanche price needs to move upwards in order to reach its resistance.
$30 is an important psychological level where the current base for the 100 EMA curve lies. Since the movement is consolidative, the 100 EMA curve could continue to fall, creating the perfect breakout scenario. Support levels for AVAX tokens remain at $13.5 and $20 in the short run. With a peak run of $146.22, AVAX is still down by 83% value.
