Avalanche (AVAX) Eyes $15 Breakout as Momentum Slowly Builds

• Avalanche (AVAX) is slowly approaching the $15 resistance, showing early signs of momentum but facing historical rejections.
• Technical indicators signal caution, with RSI at 35.45 and MACD negative, suggesting sellers still dominate the market.
• Derivatives activity is declining, with trading volume down 5.1% and open interest down 8.7%, indicating a wait-and-see sentiment.

Avalanche (AVAX) is slowly making its way back toward a key resistance level around $15. The token is showing a positive start to the week in terms of momentum. However, analysts remain uncertain whether this movement marks the beginning of a strong rally or is just another sideways phase for AVAX. After a significant price decline, the current trend shows early signs of potential strength.

At press time, Avalanche is trading at $13.26 with a 24-hour trading volume of $657.95 million and a market cap of $5.71 billion. AVAX price decreased by 5.17% over the last 24 hours, but subtle signs of recovery are emerging on the charts. Market participants are closely monitoring the situation to see if AVAX can continue this slow climb or stall at resistance.

Source: CoinMarketCap

Avalanche Faces Crucial Market Test

Analyst Jonathan Carter pointed out that AVAX is close to the top of its long-term trading range in the downward trend on the 12-hour chart. Historically, this level has caused strong rejections. But in the current scenario, a growing purchasing pressure has been noticed.

Source: X

A breakout above $15 could unleash a bullish trend for AVAX, whose support levels would be at $18, $21, $24, $28, and even $35 in a more optimistic scenario. A rejection in the current scenario may see the token rejoin the bearish trend that has been in play for months.

AVAX Struggles Near the Bottom

The RSI in the current scenario is at 35.45. There is a lack of momentum in the RSI since buyers have gone quiet. This RSI also sits well below the signal line at 46.32. Until the RSI breaks back above the 40 levels, the downward pressure will continue.

The MACD also points to the point of weakness in the market by having the MACD line positioned at –2.64 below the signal line of –1.35. The MACD histogram continues to appear red to indicate the negative momentum. According to the MACD indicators, the sellers continue to dominate the market.

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Volume and Open Interest Are Falling

In terms of derivatives, data from CoinGlass shows a decrease in activity in the derivatives market, with trading volumes down 5.1% to $888.25 million and open interest down 8.7% to $535.8 million. The Funding Rate remains slightly bearish at -0.0054%. Market activity suggests a wait-and-see scenario, where the $15 level draws attention as the pivotal point for the next direction of Avalanche.

All that’s left now is the $15 threshold. A clear breakout above it may shift the trend positive for the first time in many months, but a failure to do so would probably see Avalanche remain in the existing trend. The next few days may hold the key to the fate of the cryptocurrency in the coming weeks.

For now, all eyes are on whether AVAX can finally overcome this long-standing hurdle or if it will retreat once again.

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