Avalanche (AVAX) Price Surges 12.88% from Recent Low, Flipping Key Moving Averages into Support Levels

Avalanche (AVAX) has shown impressive signs of recovery, surging 12.88% from its recent low of $18.14. This rebound has fueled optimism among traders

Avalanche (AVAX) has shown impressive signs of recovery, surging 12.88% from its recent low of $18.14. This rebound has fueled optimism among traders, but the key question is whether AVAX can sustain this momentum in the face of several challenges.

As global cryptocurrency markets begin to show slight signs of recovery, with Bitcoin (BTC) climbing to $87,000, leading altcoins, including AVAX, are showing early indications of bullish strength.

AVAX Price Finds Support and Moves Above Key Levels

Currently trading around $23, Avalanche has found strong buying interest between the $15 and $18 price range, signaling that investors are willing to support the token at these levels.

From a technical perspective, AVAX has broken through significant resistance levels, which is a promising sign for the asset’s future price trajectory.

Most notably, AVAX has flipped the 50-day Exponential Moving Average (EMA) at $18.80 into a support level, as well as the 200-day EMA at $22.20. This upward movement indicates that the cryptocurrency is in a potential long-term uptrend, signaling strong bullish momentum.

Technical Indicators Show Bullish Sentiment

On the 4-hour chart, several indicators point to sustained buying activity. The Relative Strength Index (RSI), which stands at 80.73, suggests that buyers are currently in control and there is strong momentum behind AVAX’s recent rally.

Moreover, the Moving Average Convergence Divergence (MACD) has turned bullish, another key sign of a possible continuation in price movement. However, one major hurdle remains for AVAX: the 0.5 Fibonacci retracement level at $21.86. This price zone has historically acted as a key resistance level, and breaking through this will be crucial if AVAX is to push higher.

If AVAX fails to maintain momentum at this level, there could be resistance at around $25.

VanEck’s ETF Registration Could Provide Further Support

In an exciting development for the project, investment giant VanEck has recently registered an Avalanche ETF in Delaware. Although the ETF still requires approval from the U.S. Securities and Exchange Commission (SEC), this move aligns with the growing interest in cryptocurrency exchange-traded funds (ETFs), with other tokens like XRP, Solana (SOL), and Litecoin (LTC) also seeking ETF status.

If VanEck’s Avalanche ETF is approved, it could provide a major boost to AVAX, attracting institutional interest and increasing market liquidity.

Despite the recent rally, AVAX is still far from its all-time high of $146.22. For the bullish trend to remain intact, the token must break and hold above the $25 mark. If AVAX fails to maintain this momentum, it could see a decline back to $18.45, with a potential downside to $15 if selling pressure intensifies.

What’s Next for AVAX?

The coming days will be crucial for Avalanche, as it faces a pivotal point. A successful breakout above key resistance levels could open the door for AVAX to target the $25–$30 range, bringing the token closer to its previous highs.

However, failure to hold key support levels could lead to a deeper correction, with a potential retreat back to the $18.45 or even $15 level.

In summary, Avalanche is currently testing important technical levels that will determine its near-term direction. The increased buying interest, positive technical indicators, and potential institutional interest through the VanEck ETF offer a promising outlook.

Nevertheless, AVAX must maintain its bullish momentum and clear resistance levels if it hopes to continue its rally.