CoinWorld reports:
Avalanche has been unable to break through the $30 resistance zone for a month.
The price trend and indicators indicate a high possibility of forming a short-term range.
Avalanche
Since early August, the price has been slowly rising. It has increased by nearly 78% from its low point on August 5, almost three months ago.
During this period,
Bitcoin [BTC]
and
Ethereum [ETH]
have increased by 36.5% and 23.8% respectively.
This means that the performance of the Avalanche cryptocurrency has far exceeded that of the largest and most popular assets. However, the token is not yet ready for a long-term upward trend.
The Avalanche trend is not strong
The Awesome Oscillator histogram is close to zero, and the red bars indicate a fading bullish momentum. The market structure is bullish, but the trend has slowed down in the past three weeks.
This is reflected in the DMI, with the ADX (yellow) below 20. This indicates a lack of strong trends. The A/D indicator for October also remains flat, indicating a lack of stable buying or selling pressure.
These indicators support the price trend, indicating a lack of trend. There are some bullish signs, but the psychological level of $30 remains strong.
Unless trading volume recovers, traders may see minor fluctuations between $27.2 and $29.8.
The magnetic zone of $30 is interesting
AMBCrypto discovered a cluster of liquidity around the $30 zone. Similarly, the $27 zone has seen an increase in liquidation levels.
This finding supports the idea of Avalanche cryptocurrency forming a range in the coming days.
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It is currently unclear which of these two magnetic zones will be tested first. The $30 zone is a stronger magnet, but it is further away.
Therefore, traders should consider the retest of $27 as a buying opportunity and be prepared to take action when a positive response occurs.
Disclaimer: The information provided does not constitute financial, investment, trading, or any other type of advice and solely represents the opinion of the author.
