The global cryptocurrency market is experiencing a slight recovery, with the price of Bitcoin returning to $87,000 after a week of decline. Altcoins have followed this upward trend, particularly Avalanche (AVAX), which is attempting to regain its previous price range after a sharp 12.88% rise from a low of $18.14. This rapid rise has sparked optimism among traders, but the question remains: can AVAX maintain this momentum?


AVAX is regaining strength with the support of strong levels. AVAX is currently trading near the $23 level after facing strong demand in the $15-18 price range. Technical indicators on the 4-hour chart indicate a clear bullish trend, with the Relative Strength Index (RSI) reaching a high of 80.73, indicating strong buying activity.


The currency also managed to break through important resistance levels on the daily chart, turning the 50-day moving average (at $18.80) into support, and also surging above the 200-day moving average (at $22.20). This trend change indicates the possible start of a long-term bullish wave.


Support indicators and increased institutional interest. Among other positive indicators, the MACD indicator has turned bullish, increasing the chances of a continuation of the current positive movement. However, a significant technical hurdle remains, represented by the 0.5 Fibonacci retracement level at $21.86, which could determine the next price trajectory, whether it be a further upward movement or a downward reversal. This comes at a time of growing institutional interest in cryptocurrencies, with cryptocurrency giant VanEck registering an exchange-traded fund (ETF) linked to Avalanche in the US state of Delaware. While the fund is still awaiting approval from the US Securities and Exchange Commission (SEC), this move reflects the growing interest in crypto funds, which also include XRP, Solana, and Litecoin.


Challenges ahead and the importance of breaking above the $25 level. Despite positive signs, AVAX remains far from its all-time high of $146.22. To consolidate the current upward trajectory, the coin must break above the $25 level and hold above it. If the momentum does not continue, the coin could return to the $18.45 level, with a potential deeper decline towards $15 amid increasing selling pressure.


In the coming days, AVAX will find itself at a crucial crossroads; A successful breakout could open the way to the $25-30 price range, while failure to hold above support levels could lead to a broader correction.


Avalanche Coin Up 13%: Can AVAX Continue Its Ascent? appeared first on Yalla Crypto.