AVAX Climbed the Mountain Tops: Is There an Avalanche Coming?
Avalanche (AVAX) is an open-source platform that supports decentralized applications development in a highly scalable ecosystem. It is among the very first crypto tokens that worked on smart contracts. Avalanche (AVAX) follows a sub-sampled voting protocol that mandates a voting pattern from a random set of validators, ultimately deciding whether a transaction will be accepted.
AVAX Price Analysis
After the clear breakout on 17th August, the price momentum boosted with a substantially higher daily movement of above 20%. Another breakout followed it on 21st August, and AVAX climbed over 200% in less than ten days. Consistent green candles have now created a profitable entry for most investors as AVAX moves towards $61.
The movement of the incline was in perfect tandem up until the 17th August breakout. This breakout has forced the trend line to move up at a steep angle which is highly unsustainable. Such price action is not only unpredictable, but it can even turn bearish at any point in time. It is challenging to time your trades in such a trending asset. This calls for a profit booking on a daily time frame, and it’s just a matter of time before AVAX returns to a much sustainable angle.
On an indicative front, RSI is still trading in the overbought zones after a fall of over 32%, which means there is a scope for even lower levels trapping the buyers who entered at the all-time high zones. The trapped investors can book their losses, which will be catastrophic for this cryptocurrency.
AVAX, for now, has strong support at $39 levels, followed by the 200 DMA line of $24.68. The downside of this cryptocurrency is much higher than what it can reach on the upside move. Avalanche (AVAX) has a market capitalization of a little over USD 7 Billion with the current value of $44, which is 18 points lower than its all-time high of $61, which touched on 24th August 2021. Out of the total supply of 720 million, the amount in circulation is barely 174 million indicating a massive holding. This is another indication of immediate profit booking that can re-engage on this crypto network at any time.
AVAX cryptocurrency has broken its trend line on hourly charts and has taken small consolidation support at its support level of $40 to $43 levels. There was a sudden profit booking from $61 levels, but it is not yet a resistance level until AVAX gets rejected from the same level. The volumes on hourly charts have been consistently the same over the longer time frame.
RSI on hourly charts is much weaker, at an oversold zone, which can lead to another round of upside rally in an attempt towards breaking the recent high of $61. As per our AVAX price prediction, anyone who has entered during the peak range of $40 – $60 should continue to hold their investments. At the same time, previous investors should book their invested amount to have some cash at hand for further investment opportunities.