Avalanche (AVAX) showed a technical recovery on its chart. In the last 24 hours, in fact, the altcoin took home a gain of 4,8% and even if the daily profit was considerable, AVAX is still trading below its long-standing low price.
It is difficult for investors to view daily earnings alone as a sufficient reason to buy the coin. The coin's technical data hasn't suggested a strong rally, which could suggest AVAX could be a good buy at the time of writing.
Avalanche (AVAX) has lost 8% of its market value over the past week, forcing many investors to liquidate the asset and pull out of positions. As AVAX broke below its long-term support area, this could be a major red flag for investors. The next solid support area for AVAX was at $ 20. The coin traded around the current price level earlier in August a year ago.
We remember that Avalanche (AVAX) is trading at $ 31 today. The altcoin has been trading sideways at this price level for nearly a week. Last year it revisited this price threshold, but at the time the currency was in a bullish phase.
Immediate resistance for the coin was at $ 40, as previously established. A fall below the current price level could send AVAX close to the $ 20 support. If it fails to stabilize near the $ 20 threshold, AVAX could find itself between the $ 12 and $ 9 support level.
The altcoin continues to show weakness on its technical chart, with short-term bearish prospects. According to the Relative Strength Index, for example, the indicator is on the edge of oversold and until the RSI manages to move above the midline, it is too early to define this price action as a reversal. .
On the one-day chart, the technical data from AVAX indicates a possible change in price direction at the time of writing. The MACD (Moving Average Convergence Diverge) showed a green signal bar above the midline, possibly meaning a buy indication. The Parabolic SAR also showed a point below the price candles, signifying a change in the direction of prices. If more points are seen below the candles in the next trading sessions, AVAX could recover on its chart.