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AVAX jumps 24% but faces potential retracement

AVAX jumps 24% but faces potential retracement

GrafaGrafa2024/11/08 04:00
By:Liezl Gambe

Avalanche (CRYPTO:AVAX) experienced a 24% price surge over the past 48 hours, bouncing from the $22 mark and approaching the critical support level near $28.

This level, once part of a symmetrical triangle pattern, could act as resistance if not surpassed, potentially affecting AVAX’s continued bullish trend.

AMBCrypto’s analysis pointed to positive market sentiment backed by on-chain metrics.

According to data from IntoTheBlock, there was a 49% increase in whale activity and a 14% rise in trading volume, suggesting that larger market participants and traders are engaged with AVAX.

Despite this momentum, potential challenges remain.

Coinglass data indicated a notable liquidation pool at $26.73, valued at 563K worth of AVAX.

This level may either support the ongoing rally or act as resistance, depending on market reaction and the strength of trading activity and whale engagement.

If AVAX successfully turns the $28 level into new support, the bullish trend could extend further, potentially leading to additional gains.

Conversely, should resistance hold firm at approximately $28.16, AVAX might see a brief pullback before resuming any upward movement.

Investors will be closely watching AVAX's behavior as it tests these significant levels.

A strong push past resistance could solidify continued growth, while failure to break through may prompt consolidation or a short-term retracement.

The upcoming days will be critical in shaping the next phase of AVAX's price trajectory.

At the time of reporting, the Avalanche price was $27.28.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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