Avalanche (AVAX) Bulls Face Stern Test at $50
Avalanche price is at the cusp of breaching a crucial resistance level, which could largely impact the overall profits of AVAX holders.
However, historical occurrences make this probability slightly thinner, evoking the question of whether investors will bear profits soon or if they will have to wait longer.
Avalanche Price Close to Noting Half-Century
Avalanche price, trading at $47 at the time of writing, has risen by over 10.6% in the last 24 hours, crossing the $44 resistance earlier in the day. The next barrier for the altcoin is set at $50, which is not only an important psychological resistance but also an important technical level.
Over 300,000 AVAX holders have been waiting for this moment since December 2023. About 9.16 million AVAX worth more than $436 million sits at this price point. Bought at an average of $53, this supply would become profitable once the $50 resistance is flipped into support.
This anticipation will prove to be beneficial to Avalanche’s price as well since investors will likely hold off on selling for now. Furthermore, technical indicators signal a bullish path for the altcoin.
Read More: How to Buy Avalanche (AVAX) with a Credit Card: A Step-by-Step Guide
Avalanche Price Prediction – the First in a While
Investors and market conditions support Avalanche price breaching $50. The Relative Strength Index (RSI) is presently in the bullish zone below the overbought threshold, painting a positive outcome for AVAX.
RSI assesses recent price fluctuations to determine whether a market is overbought or oversold. Akin to this is MACD (Moving Average Convergence Divergence). This trend-following momentum indicator shows the relationship between two moving averages of an asset’s price.
MACD, for the first time in four months, is noticing a bullish crossover. Here, the signal line is crossing over the indicator line.
In longer timeframes, such as 3-day intervals, these instances typically signal a bull run, especially in active markets.
Thus, AVAX is likely to break through $50, a level it failed to breach back in December last year. Flipping it into support would enable Avalanche’s price to rally further and cross $53.
Read More: How To Buy Avalanche (AVAX) and Everything You Need To Know
However, the altcoin could see some correction if the $50 breach fails again. This would bring AVAX down to $44, invalidating the bullish thesis.
Disclaimer
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