As the crypto market continues to wait in anticipation, trading volumes have decreased this week due to Christmas, and volatility has weakened for Bitcoin and many altcoins. The rise of Layer-1 projects, starting with Solana, continues to lose momentum due to investors taking profits. So, what can be expected for AVAX, the native token of the popular blockchain network Avalanche? Let’s take a look.
AVAX Four-Hour Chart Analysis
The first notable pattern in the four-hour AVAX chart is the rising channel formation. After a long time, the next bar formations touching the support line will provide clues for direction determination. However, the last bar formation staying below EMA 21 (blue line) suggests a negative scenario for AVAX in the short term.
The most important support levels to watch in the four-hour AVAX chart are; $39.21 / $36.53 and $33.95, respectively. Particularly, a four-hour bar closing below the $39.21 level, which intersects with the support line, could create selling pressure in the short term.
The most important resistance levels for AVAX to monitor are; $42.19 / $45.15 and $49.00, respectively. Especially, a four-hour bar closing above the $42.19 level, which poses a significant barrier and intersects with EMA 7 (green line), will help AVAX gain momentum.
AVAX Weekly Chart Analysis
The first noticeable formation in the weekly AVAX chart is the descending channel formation. This structure takes into account the period from October 2021 to the present. While offering important clues for investors, AVAX managed to gain significant momentum with the resistance breakout in the past weeks.
The most important support levels in the weekly AVAX chart are; $37.10 / $30.80 and $23.02, respectively. Particularly, a weekly bar closing below the $37.10 level, which has played a significant role in recent weeks, will lead to selling pressure on the AVAX price.
The most important resistance levels to follow in the AVAX chart are; $50.21 / $72.86 and $104.51, respectively. Especially, a weekly bar closing above the $50.21 level, which has been a significant barrier in the last two bar formations, will help AVAX gain momentum.
