- Avalanche broke past a key resistance but has since stalled
- AVAX Misses A Directional Bias Amid The 50-Day MA Joining A Support
- The token could slide towards the resistance at $20
Avalanche AVAX/USD is trading at $23.3 as of writing. The price is well above the key $20 breakout zone, which has now turned support. However, for more than two weeks, Avalanche has been staying above $20. Is it an obvious lack of buyers, or is the cryptocurrency gaining momentum to move higher?
A brief overview of Avalanche shows that past moves were driven by momentum. That’s mainly because the token became attractive at the bottom of $15 since the Luna-inspired crash. Most of AVAX’s rise is also due to improving crypto sentiment. At the current level, AVAX needs further triggers to move higher.
AVAX for $41? A week ago, crypto analyst Michaël van de Poppe said Avalanche could rise to $41. The analyst, who has about 619,600 Twitter followers, says AVAX’s close 50-day MA close is a bull trigger. While we can’t agree or disagree with the forecast, we should look at the daily chart for an assessment.
AVAX Holds Above $20 Despite Slow Bullish Push
Source – TradingView
On the daily chart, AVAX is holding strong above the USD 20 support. The 50-day moving average joined support in mid-July for the first time since April. The cryptocurrency has retested the MA while keeping support intact.
On the contrary, the MACD indicator shows declining bullish momentum. Nevertheless, we still see a lack of a directional bias towards AVAX rather than a bearish move. $20 is the level to watch or at the intersection with the 50-day MA.
AVAX lacks a directional bias. The 50-day MA has recently joined the support. As long as AVAX continues to hold the USD 20 level, it has a chance of reaching higher levels. The next targets are $27 and $37.