warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice
- The avalanche broke the low volatility phase to reveal an upward trend in recent days.
- Krypton funding rates turned negative but the buy/short ratio showed a bullish edge.
While the bulls finally broke the trend line support (white, dashed) after seven months, the ongoing uptrend has set Avalanche [AVAX] Above the Bollinger Bands baseline (BB) to show a strong buying advantage.
Here AMBCryptos Avalanche Price Prediction [AVAX] for the year 2023-24
To find newer highs, the alternative eye tested the upper band of BB near the immediate resistance area. The bears may aim to block the green candlestick line in the upcoming sessions. At the time of writing, AVAX is trading at $19.29.
A typical AVAX breakout could pave the way for a trend reversal
AVAX lost nearly half of its value after switching from trendline resistance (now support) from mid-August to mid-October. However, the $14.8 baseline revived buying pressure as the bulls shifted this line from resistance to support.
This bullish rally led to a much-needed breakout of the falling wedge that has grown over 24% over the past 10 days. Meanwhile, this transient breakout has caused the upper band of BB to turn north and show a strong bullish edge.
A close above the resistance range between $19.4 and $20.2 could confirm the chances of the breakout continuing higher. Under these circumstances, buyers could test the range resistance at $22-$23 in the upcoming sessions.
On the other hand, any reversal from the immediate ceiling range could trigger a short-term dip before buyers look to rebound. In this case, the first major support level will be at $18.2, followed by the BB baseline.
The Relative Strength Index (RSI) has entered the overbought zone revealing an extended buying advantage. A reasonable recovery from this area may ease buying pressure before the bulls continue higher. Additionally, the recent highs of the VO indicator have diverged bearishly with price action.
AVAX financing rates and long/short ratio revealed it
Since mid-October, the altcoin funding price on Binance has been on an upward trend. However, the recent drop to higher levels has pulled prices below the zero line towards the downside. Buyers should look for a possible reversal above the zero line to gauge the chances of a continuation of the rally.
Interestingly, the buy/sell ratio skewed slightly in favor of the buyers while the broader sentiment appeared to be improving. However, the objectives will remain as discussed.
Finally, traders should take it into consideration Bitcoin movement and its effects on the broader market to make a profitable move.