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Investors and traders of Avalanche ($AVAX) are closely monitoring three critical price levels, as highlighted by IntoTheBlock, a renowned on-chain analysis platform.
These levels are essential for predicting the cryptocurrency’s future movements.
Which Are Three Important Price Levels For Avalanche?
Initially, $AVAX, which reached a local peak at $65.39 on March 18, has since fallen by about 45%, currently trading at approximately $36.72.
The green bubble on IntoTheBlock’s global in/out of the money chart reveals that 866,000 addresses have bought around 14.49 million $AVAX at an average price of $31.72. This figure is pivotal because it represents a key demand zone that could provide strong support if the price drops to these levels again.
On the flip side, the red bubble indicates a potential resistance level. This involves roughly 1.04 million addresses that hold about 22.75 million $AVAX, purchased at an average of $48.67. $AVAX price might face resistance at this level because investors might sell to break even.
Read more: How To Buy Avalanche ($AVAX) and Everything You Need To Know
Furthermore, the grey bubble identifies a critical supply zone around $36.77, where 541,000 addresses have acquired approximately 25.55 million $AVAX. This area could also serve as resistance, possibly limiting upward price movements.
Technical analysis corroborates these observations, indicating that $AVAX is currently consolidating between $31.32 and $39.89. Should it break out from this range, the price could surge by 32% toward the next significant resistance at about $48.85.
Moreover, crypto analyst Ameba provided insights on potential short-term price movements for $AVAX. He believes $AVAX can test the lower range level before the next leg up.
“I’d like to see an under over mid range or if things get sour a swipe of range lows for a range play,” Ameba said.
Read more: Avalanche ($AVAX) Price Prediction 2024/2025/2030
For investors, recognizing these levels is crucial for planning effective entry and exit strategies in the $AVAX market. Given the current market conditions, a cautious approach is advisable, with vigilant monitoring needed to navigate through the potential resistance and support zones identified by recent on-chain data.
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