Can AVAX Build a Strong Recovery from $16 ?
AVAX recently tested the $16 support zone before bouncing back. This recovery, coupled with an increase in on-chain activity, has caught the market players’ attention. However, despite these encouraging developments, the long-term outlook for bullish investors seems mixed.
Source: IntoTheBlock
Since June 11, AVAX has been on a downtrend, dropping by 26% in less than two weeks. Although the currency then experienced a 9.26% rally, investors must remain cautious amidst the current volatility.
AVAX on-chain activity has recently seen a significant uptick, although it has not yet reached April’s peaks. With a 204% increase in active addresses over 7 days, the demand for Avalanche could intensify, supporting its recovery. Forecasts also indicate a bullish reversal potential, but investors need to remain vigilant.
A Massive Technical Challenge for Avalanche
Despite the successful defense of $16 support, the technical indicators remain bearish. The Awesome Oscillator reflects a negative momentum, while the OBV remains below its early May low. Traders should prepare for a potential recovery to $19.6, but with a below-average daily trading volume, resistance at the mid-level is to be expected.
Moreover, due to the high proportion of holders in loss, the sentiment remains mixed. Investors should, therefore, remain cautious before considering significant movements.
The AVAX analysis underscores the need for investors to closely monitor market movements. It’s essential to closely track on-chain developments and stay vigilant amidst the current volatility of cryptocurrencies. Although the $16 support holds for now, the global financial environment could significantly influence AVAX’s long-term trajectory.
