- Avalanche has increased more than 24% in the past four days.
- Now AVAX faces critical resistance at $ 69.
- Violating this level could lead to an ATH level, while failure to do so could lead to a correction.
Avalanche (AVAX) rose slightly after a series of positive announcements about the project attracted investor attention.
Avalanche approaches key drag
Avalanche (AVAX) has been moving steadily up over the past four days. Since October 19, it’s up more than 24% to hit a high of $ 69.
Some of the recent announcements may have affected Avalanche’s uptrend. Has DeFi protocol implementation Alpha Homora V2 allows users to combine their yield farming tokens with borrowed tokens as collateral to achieve a higher APY. In addition, the famous photographer Jason Peterson publication an NFT gallery of some of his favorite photos on Avalanche.
From a technical point of view, the sudden upward move seems to have been predicted by the Tom DeMark (TD) Sequential Indicator, which is showing a buy-signal on the AVAX daily chart. Signaled a rally in the form of a red 9 candle on October 12th, suggesting that Avalanche’s uptrend will continue.
When AVAX flipped the 50-day SMA as support on October 20th, the TD buy-signal was confirmed, which has led to an increase in the past few days.
AVAX / USDT daily chart | Source: TradingView
Now Avalanche seems to have reached an important resistance cluster. TD’s established trendline and the 61.8% Fib retracement level at USD 69 act as a strong barrier preventing AVAX from further advancing.
Given that Bitcoin and Ethereum appear to have fallen below support levels, it is reasonable to consider that Avalanche will be rejected by those levels. Profit taking around the current price level could result in a correction towards $ 65 or even $ 62 before the uptrend resumes.
However, a daily close above the USD 69 resistance could provide AVAX with further headwinds towards higher highs. A break above this key point could push the price towards $ 73.5 or even retest the all-time high of $ 79.6.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to crypto briefing