Avalanche price action has remained bearish on the chart at the time of writing. AVAX has maintained the price above its support line of $22. Right after the coin surged and revisited the $24 mark, it started to retrace on its chart.
This is a price correction as Avalanche price showed appreciation over the last two weeks. At the moment Avalanche is witnessing a profit booking which has caused buying strength to fade away over the last few days.
Incase Avalanche price manages to push above the $25 price zone, the bullish force might gain strength. Buyers can again find their way back to the market if AVAX falls on its chart which in turn could trigger another rally.
Broader crypto market strength also remains low with BTC crawling below the $23,000 price mark. Ethereum too extended losses over the last 24 hours. Most altcoins followed the same price trajectory.
For Avalanche price to reclaim its immediate resistance of $24.8, strength from buyers remain crucial. The global cryptocurrency market cap today is at $1.1 Trillion with a 2.5% fall in the last 24 hours.
Avalanche Price Analysis: Four Hour Chart
Avalanche was priced at $23.12 on the four hour chart | Source: AVAXUSD on TradingView
AVAX was trading at $23.12 at the press time. It displayed a correction after it witnessed a rally in the past two weeks. Immediate support for the coin was at $22 and continued selling pressure could push Avalanche price to $21.
Overhead resistance for Avalanche was at $24.8, a break above that level could catapult Avalanche price to $26. The coin has been struggling to break past the aforementioned price level for multiple weeks now.
At the moment, sellers have flocked the market for profit booking as Avalanche price registered an upswing just two weeks ago. The volume of Avalanche traded in the past session was less compared to the session before that. This could hint towards fall in buying strength.
Avalanche displayed fall in the number of buyers on the four hour chart | Source: AVAXUSD on TradingView
The altcoin’s buying strength was low on its chart. The recent profit booking was the reason why sellers outnumbered buyers. Technical indicators signalled the same reading. The Relative Strength Index was parked a little below the half-line which meant that selling pressure was higher than buying pressure.
Avalanche price peeped slightly above the 20-SMA line, this could be a mixed signal. A reading above the 20-SMA means bullish, a reading below that means sellers were driving the price momentum in the market.
Avalanche flashed buy signal on the four hour chart | Source: AVAXUSD on TradingView
The other technical indicators painted a mixed signal. The Chaikin Money Flow that is concerned with the capital inflows and outflows was seen to be in a positive zone. CMF’s reading above the zero-line indicated that capital inflows exceeded outflows at the time of writing.
Moving Average Convergence Divergence depicts the price momentum and change in price direction. MACD also underwent a bullish crossover and formed green histograms. Green histograms were signs of buying signal for the coin. This also meant that if buyers acted on it, AVAX would register gains.
Featured image from Kalkine Media, chart from TradingView.com