Investors and traders of Avalanche (AVAX) are closely monitoring three critical price levels, as highlighted by IntoTheBlock, a renowned on-chain analysis platform.
These levels are essential for predicting the cryptocurrency’s future movements.
Which Are Three Important Price Levels For Avalanche?
Initially, AVAX, which reached a local peak at $65.39 on March 18, has since fallen by about 45%, currently trading at approximately $36.72.
The green bubble on IntoTheBlock’s global in/out of the money chart reveals that 866,000 addresses have bought around 14.49 million AVAX at an average price of $31.72. This figure is pivotal because it represents a key demand zone that could provide strong support if the price drops to these levels again.
On the flip side, the red bubble indicates a potential resistance level. This involves roughly 1.04 million addresses that hold about 22.75 million AVAX, purchased at an average of $48.67. AVAX price might face resistance at this level because investors might sell to break even.
Furthermore, the grey bubble identifies a critical supply zone around $36.77, where 541,000 addresses have acquired approximately 25.55 million AVAX. This area could also serve as resistance, possibly limiting upward price movements.
Technical analysis corroborates these observations, indicating that AVAX is currently consolidating between $31.32 and $39.89. Should it break out from this range, the price could surge by 32% toward the next significant resistance at about $48.85.
Moreover, crypto analyst Ameba provided insights on potential short-term price movements for AVAX. He believes AVAX can test the lower range level before the next leg up.
“I’d like to see an under over mid range or if things get sour a swipe of range lows for a range play,” Ameba said .
For investors, recognizing these levels is crucial for planning effective entry and exit strategies in the AVAX market. Given the current market conditions, a cautious approach is advisable, with vigilant monitoring needed to navigate through the potential resistance and support zones identified by recent on-chain data.
