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Could this be a bounce in Avalanche given the 17% weekly price increase?

The price of the avalanche is approaching $20.00 after moving 17% from support at $15.00 in just seven days.

Photo by Tyler Lastovich / Unsplash

The price of the avalanche is approaching $20.00 after moving 17% from support at $15.00 in just seven days.

The current situation

It's doubtful that prices would rise to $20.00 unless bulls crush resistance at the 200-day SMA. The platform Core from Avalanche (1) gives consumers a better method to connect to Web3. After taking advantage of a significant relief bounce, the avalanche price virtually recoups gains to $20.00. Buyers slowed the advance to higher levels while maintaining support around $15.00, weakening the selling congestion zones between $16.00 and $17.00. While bulls consider the next move to $20.00, AVAX is now perched on top of this barrier that has now converted into support ($17.00). The Avalanche price advance, however, might be jeopardized, and the likelihood of a pullback increased by overhead pressure above $18.00.

Bears from Avalanche Price want retribution.

If buyers manage one more swing over the 200-day SMA (2), as seen on the eight-hour chart below, the avalanche price may shift its technical outlook positively. The strong resistance level around $18.00, reinforced by that moving average, is likely to stifle the momentum behind AVAX. In early September, this region served as support, but only temporarily. Since attempts to regain the same level have proved fruitless, the likelihood of another trend reversal is obvious.

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Additionally, if the RSI (3) touches the overbought area, it can make things worse for the bulls. Prices often adjust during overbought circumstances. It would be wise to keep an eye out for the RSI entering and leaving the overbought territory in the case of the Avalanche price. From overbought levels, reentering the neutral zone is an excellent opportunity to lock in profits and look for fresh short positions.

What to expect next?

However, a break above the 200-day SMA may confirm the uptrend and open the door for traders to take more lucrative long bets. Conservative traders may set a take-profit objective of $22.00, but very optimistic investors may follow AVAX's trend to $30.00.

Avalanche has unveiled a brand-new platform called Core. Consider it a central command post for all things AVAX. On the same site, users may see their portfolios, carry out transactions on-chain, and obtain network statistics. Because users have the option to discover and connect to dApps (decentralized applications) ecosystems, Core serves as a bridge between Avalanche and Web3.