Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Avalanche has been on an uptrend for the past three weeks and even established a bullish structure in the one day time frame. The $14 area represented a strong resistance zone and the breakout was a positive sign.
Avalanche [AVAX] rose to $15.97 on Friday, July 14, with gains of 32% measured from June 21, when AVAX price action took a bullish turn on the 1-day chart. The price action continued to favor the bulls.
Read Avalanches [AVAX] Price Forecast 2023-24
News from Uniswap [UNI] expansion into the AVAX network helped explain the strong rally Avalanche saw last week. After the breakout past the $14.5 zone and subsequent retest, AVAX was likely to continue to climb higher.
The bullish structure and trend allowed a move to $16 and above
Source: AVAX/USDT on TradingView
The OBV showed huge buying volume in the Avalanche market over the past few days which catapulted the price above the $14.5 resistance zone. This area, highlighted by the red box, was a bearish order block on the 1-day timeframe from June 6.
It was previously tested as resistance on July 9, and AVAX received a brief rejection to fall to $12.85 before rallying again. Based on this move, a series of Fibonacci retracement levels were plotted. It showed that the 50% and 61.8% retracement levels were $14.41 and $14.04, respectively.
Hence, these are the two levels traders can look to bid on AVAX, targeting a move to the local highs at $16 and a 23.6% extension at $16.71. Invalidating this idea would be a drop below the 78.6% retracement level at $13.52.
The RSI and moving averages showed bullish momentum. The H4 market structure was also bullish. But a drop below the higher low at $14.04 would shift the trend to the bearish side.
The Open Interest started to decrease after the near-term AVAX rejection of $15
Source: Coinalyse
The 1-hour chart showed that on July 15, OI followed a strong upward trajectory along with prices. However, buyers’ conviction started to weaken as the price started to fall after moving towards $15.35.
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This should not deter swing traders as it was the weekend. And volume was low and the market may not be ready for a breakout. The declining CVD over the past two days has also been a concern for short-term bulls. It was at odds with the OBV, which saw only a minor pullback and showed bullish dominance overall.
This post Avalanche offers a buy option for $14.5, which is why you should take it
was published first on https://ambcrypto.com/avalanche-offers-a-buying-opportunity-at-14-5-heres-why-you-should-take-it/
