Keyphrase: Avalanche (AVAX) Price Forecast
Avalanche (AVAX) has shown a strong recovery momentum as it began trading in an ascending channel on August 6. The altcoin is currently priced at $20.66, up 5% from its August 5 closing price of $19.54. Let’s dive deeper into the price forecast and the factors influencing AVAX’s performance.
Positive Momentum Indicators
One of the key indicators of AVAX’s bullish momentum is the Moving Average Convergence Divergence (MACD) crossover that occurred on August 17. This signals a shift from bearish to bullish momentum, indicating a potential uptrend. Additionally, positive funding rates across exchanges are boosting trader optimism, leading to a higher demand for long positions.
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Challenges and Limitations
Despite the positive indicators, AVAX faces challenges in maintaining its upward trajectory. The Relative Strength Index (RSI) is below the neutral level, suggesting more selling pressure than buying. Moreover, the Chaikin Money Flow (CMF) remains negative, indicating ongoing selling activity that may hinder significant price gains.
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Future Price Outlook
If selling pressure increases, AVAX could dip below the support level and retest previous lows. Conversely, sustained buying activity could push the price above $20, potentially reaching $28.64. Traders should closely monitor these key levels and indicators to make informed investment decisions.
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