AVAX rallied as BTC continued to rise following US CPI announcements.
The target for a long entry could be $14.82 and the 38.2% Fib level ($14.96) if the uptrend continues.
Avalanche [AVAX] has been rising since mid-November and has reached higher lows. However, it bottomed out around December 12th and settled at the $12.99 support level. A bullish BTC drives it higher.
Bulls used the $12.99 support to start a rally that could take AVAX to the 38.2% Fib level ($14.96). At the time of going to press, AVAX was trading at $13.78, up about 6%, with trading volume up over 120% in the last 24 hours.
AVAX could break through some resistance levels, including $14.96, the immediate target if the uptrend continues.
A Confirmed Breakout Above $13.61: Will the Uptrend Continue?
After the US CPI announcement showing inflation slowing in November, the stock market moved up and the crypto sector followed suit. A bullish BTC greened the altcoin market and AVAX was one of the altcoins that recovered.
AVAX could break the 38.2% Fib level ($14.96) resistance and continue its uptrend if BTC remains bullish. Consequently, technical indicators suggest that the uptrend could continue.
After pulling back from the lower range, the Relative Strength Index (RSI) has broken above the neutral 50 level. This shows that buying pressure is building up quickly.
Correspondingly, On-Balance-Volume (OBV) also rose sharply, indicating that trading volume has increased. Thus, buying pressure could increase and drive the price of AVAX higher.
AVAX could therefore break resistance at the 38.2% Fib level ($14.96) and move towards the 50% Fib level ($16.05). This would mean a potential gain of 15% if the rally reaches the 50% Fib level or 8% if the bulls cool off at the 38.2% Fib level.
However, a drop below the 23.6% Fib level ($13.61) would negate the above bullish forecast. Such a move down could force AVAX to retest the support level at $12.99.
AVAX saw an improvement in weighted sentiment in the spot markets
Sentiment for AVAX has improved since December 12, according to Santiment. At the time of writing, weighted sentiment had turned positive, pointing to an optimistic outlook for AVAX in the spot market
In addition, increased trading volume indicates increased buying pressure, suggesting that the AVAX rally could continue.
However, bearish sentiment in BTC could reverse the trend and negate the bullish outlook.
This post Going long on Avalanche [AVAX]? Mark these levels to take profit
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