Altcoins
Premature AVAX price rally could send altcoin to $55 this week
- AVAX price shows renewed bullish momentum, hinting at another rally.
- Investors can expect Avalanche to head towards the weekly resistance zone, extending from $51 to $56.
- Failure to produce a high above $49, coupled with a low below $37, will invalidate the bullish thesis.
Avalanche (AVAX) price is rising rapidly with renewed bullish momentum in 2024. This move comes after a massive sell-off on the last day of 2023. With sustained buying pressure, AVAX is likely to continue your ascent.
Learn more: AVAX Price Could Rise Another 20% Before Overheating
AVAX price initiates the next step
The price of AVAX increased by 12% between January 1 and the current trading level of $43. This climb takes place during the first trading week of 2024 and likely has more length due to the December 31 sell-off. This move helped collect liquidity lying below the December 19 low of $38.
One of the common identifiers of bull rally continuation seen in altcoins is sweeping the previous low and producing a higher high. Therefore, the recent rally seems to portend more gains in the near future for Avalanche token holders.
Going forward, investors can expect AVAX price to enter a resistance zone extending from $51 to $56. This move, from the current level of $43 to $55, would constitute a 27% move.
This bullish thesis is supported by a reset of the previously overbought Relative Strength Index (RSI) to the average level of 50.
AVAX/USDT 1-day chart
Although AVAX’s technical chart shows a resumption of the bullish rally, investors should be cautious if the token fails to reach a high above $49. This movement would be first sign of weakness. If this development is coupled with a low below $37, it will invalidate the bullish thesis.
In such a case, AVAX price could fall back into the weekly imbalance, which extends from $31 to $22. This would imply a 16% drop from current price levels.