Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
-Higher time frame AVAX structure flipped to bullish.
-The daily bearish order block near the $21 region was the next target for bulls.
Bitcoin climbed as high as $31,000, but at the time of writing, it was trading in the $30.4k area. The price action instilled bullish confidence in the crypto market and Avalanche managed to break a month-long resistance zone.
Read Avalanches [AVAX] Price Forecast 2023-24
Avalanche recovered well from the losses it suffered during the mid-March sell-off when the price fell below $14. The move above the $18.7 resistance turned the daily market structure to bullish.
A revisit of the range highs, if it occurs, would present a buying opportunity as it would be a retest of a demand zone.
The breakout past the range highs meant that AVAX was heading into this bearish order block
Source: AVAX/USDT on TradingView
From March 18 to April 11, Avalanche traded within a range (yellow) that ran from $15.25 to $18.3. In recent days, AVAX has broken out above this range and did so thanks to strong demand.
The RSI showed significant bullish momentum and the OBV spiked up to underline the major buying pressure behind the token. If this continued, it was likely that Avalanche would soon hit the next area of resistance at $21.
Realistic or not, here is AVAX’s market cap in BTC terms
The $21 area was important due to the presence of a daily bearish order block that formed on Feb. 21. Marked in red, could be a significant obstacle for AVAX bulls. Therefore, lower tier buyers can try to take profits and re-enter if another breakout occurs.
The rise in volatility and bullish structure may be indicative of further gains
Source: Sentiment
The bullish structure and the breakout increased 1-week volatility. This statistic has been on the decline for much of the past month, and its rise in recent days followed the AVAX breakout. The contraction and expansion since mid-March signaled the possibility of a strong rally.
Development activity has picked up over the past three weeks and longer-term investors can take confidence from this. In addition, the funding ratio remained positive, as did social sentiment.
This post Avalanche is likely to post gains after a breakout above $18.3, here’s why
was published first on https://ambcrypto.com/avalanche-likely-to-post-gains-following-a-breakout-past-18-3-heres-why/
