Avalanche (AVAX) hit a new all-time high earlier today at $ 99.90, within 10 cents of the $ 100 mark. However, the price quickly retraced after losing 8% following the new high.
Key assistance level: $ 78
Key Resistance Level: $ 100 (ATH), $ 102
AVAX has been in a clear bullish trend for some time and has set a new all-time high today at just under $100. However, so far the bullish momentum has not been able to break through the milestone level, and today’s candle may end up with a long wick on the upside.
The critical resistance level lies at the $100 – $102 range. If the bulls do not close above resistance, we can expect a retracement towards the key support level around $ 78.
Despite the new record, there are first early signs of weakening of the bullish trend, as per the technicals below.
AVAX technical price indicators
Trade volume: Volume was high (bullish) on this last higher stage; however, it remains lower than the volume recorded in September. A decreasing amount of volume in an uptrend is a possible sign of trend weakening.
RSI: The RSI has seen a large bearish divergence. Each high on the price was followed by a high low on the RSI, running from August to November. If this divergence plays out, then AVAX may enter a significant correction.
MACD: The MACD on the daily period is bullish as of this writing, but similar to the RSI, the MACD histogram shows signs of a bearish divergence. Watch closer if the MACD goes through a bearish cross on its moving averages.
Bias
The bias for AVAX is bullish right now, however, if support does not hold it can quickly turn bearish in the short term.
Short-Term Price Prediction for AVAX
While today’s 3-digit all-time high gives an excellent reason to celebrate for Avalanche holders, the strength of the last leg pales in comparison to the past.
This is reason enough to monitor price developments and the daily and weekly candle very carefully. Following a major rally, AVAX might need to breathe some air and retest the critical support at $78 before attempting to break $100.
