Avalanche Analysis (AVAX) – Under the best auspices? – CryptoNews

Some altcoins are ticking critical thresholds for a start to neutralize their bear markets. For exemple, the AVAX cryptocurrency of the Avalanche network, supported by its partnership with Amazon Web Services, would seem to leave under the best auspice by covering a good part of the losses caused by the setbacks of FTX. To the point that sellers are beginning to worry about a continuation of the rebound.

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Hugh B. – 12 Jan 2023 – 13:30

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In a market environment where many investors seem to believe that the hardest part is over inflation, let’s now see the latest technical price analysis of the AVAX cryptocurrency from the Avalanche blockchain. This in order to give us clues about a possible return of the Altseason.

Avalanche in weekly units – The $18 in sight

Thanks to inflation that could continue to decline and its partnership with Amazon’s cloud subsidiary, the AVAX token is heli-bounding towards the resistance of $18, not far from the 30-week moving average (MM30 weekly). Better still, the latter sees its slope bend flat with the hope of passing from the Weinstein phase 4 to phase 1. Which would mean that we would potentially see the beginning of a neutralization of the bear market.

Avalanche (AVAX) Weekly Price Analysis - 12 January 2023

At the same time, the bullish divergences on the MACD and RSI are gradually asserting themselves, but are struggling to return above the zero line and the neutral zone at 50 respectively. the failure of a third wave of correction that would extend below the support of $11, could gain momentum. At the risk that the sellers arrived late. would be forced to settle their positions.

Assuming a breakout above $18, prices of the native Avalanche token may project towards the resistance at $30. With technical indicators that would likely cross above their respective fold lines. Enough to highlight a favorable change of polarity around $18 which would become a support.

Conversely, the scenario of a pullback below $18 should not be taken lightly by investors if the market context returns to its 2022 biases. In this case, the breakout of $11 would practically lead us back to the IPO price of the Avalanche blockchain cryptocurrency.

Avalanche in daily units – Soon above the 200-day moving average?

Just like the MM30 weekly, the 200-day moving average (daily 200 MA) is falling to the resistance level at $18. This would support the idea of ​​a bear market in the prices of the AVAX token since its last ATH in November 2021 in loss of momentum. At the same time, the technical indicators managed to break through their respective fold lines.

Daily Avalanche (AVAX) price analysis - 12 January 2023

If an RSI in the overbought zone can constitute a technical hindrance, it doesn’t necessarily have to be when the Avalanche token crosses a falling wedge, a bullish reversal chart pattern. In the event of an ebb that would make up part of the rise of the candle yesterday, we would increase our chances of regaining the 200 daily MA and the $18 simultaneously.

And as we mentioned on the weekly chart, crossing these key thresholds would allow buyers to regain some price control, not to mark the end of the bearrun, but to glimpse a process of neutralization. Because for the moment, we are in a market context which would suggest that things could work out smoothly without the slightest pebble in the shoe of the FED.

AVAX – Sellers in a delicate position?

Awaiting the latest US inflation figures released this afternoon, Avalanche token prices appear to be on the starting blocks to break through the $18 resistance. Assuming they come out on the right side of the barrier, it (and cryptocurrencies at large) could continue their early year rally. To the point that many sellers would be in a delicate position with an AVAX above the MM30 weekly and 200 daily. Otherwise, we would risk returning to square one, that is to say a return inside the falling wedge.

Beyond inflation, we will have to watch the Fed’s intentions next month. Because since mid-October last, investors have bet heavily on a possible moderation of its monetary policy. But at the same time, the fact that financial conditions have eased significantly could embarrass the US central bank.

Not only does it remain hesitant between a temporary or lasting nature of inflation. But if the second option should prevail, then easing monetary policy would risk bringing inflation back to the fore. And in this specific case, it would no longer be the recession that would worry investors, but rather stagflation that would potentially go beyond 2022 and beyond.

Consequently, nothing would be certain as long as the FED did not meet market expectations. In which case, a flashback of the dollar against the major currencies cannot be ruled out. This would again abort the rebounds of the various risky asset classes. And unfortunately, cryptocurrencies would permanently lose its main engine, the liquidity of central banks.

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Avalanche Analysis (AVAX) – Under the best auspices? – CryptoNews


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