The high volatility in the cryptocurrency markets continued at the time of writing this article. BTC surpassed $37,200 again. Investors may not have recovered from the Binance incident and started taking positions yet. While the majority is watching what will happen, the price quickly recovered with sudden buying on exchanges. So, what are the expectations for AVAX Coin?
AVAX Coin Analysis
At the time of writing this article, AVAX Coin is finding buyers at $21. It lagged behind its popular competitor Ethereum and started its rally with a delay. While SOL Coin and many other cryptocurrencies experienced massive increases, AVAX bulls were struggling to surpass $15.
Finally, it happened. The AVAX price broke out of the decreasing resistance trend line that had been stagnant for 455 days. This resistance line had been blocking the bulls since August 2022 on the weekly chart. After dropping to $8.6 during the challenging period, the price finally broke free from this obstacle.
RSI and price are rising, indicating a continuation of the uptrend in the long-term chart.
AVAX Coin Analysis
Analysts appear more cautious as the recent upward movement started difficultly and they are concerned that it might end easily. For example, AltcoinSherpa shared a short-term bearish prediction while the price was climbing to higher levels. iWantCoinNews, on the other hand, expects a pullback in the price at the long-term resistance zone. However, while BTC remained above $37,000, the AVAX price held at $21.
There is a potential early bearish signal on the daily chart due to the unexpected drop in BTC’s price. RSI has weakened slightly, and as the price rises, RSI is starting to relax. If demand weakens with the increase, it is a bearish divergence.
The critical area is the $21.5 resistance zone. If AVAX bulls can close above this level, the bearish scenario can be invalidated. On the contrary, if the price continues to close below the resistance, we may see a 30% loss in price, dropping to the $14.8 region.
If the resistance zone is reclaimed, the nearest resistance zone is at $30. Bulls may want to test this level again. However, there is a problem. In the coming days, we will hear about a $200 million lock-up release. If the JP Morgan news does not generate buying support from ready-to-buy investors, we may see needles dropping to $14.8 or even $13 levels.