AVAXUSDT.1D
2024-09-30

In my technical analysis of the AVAX/USDT daily chart, I'm focusing on the recent price action which suggests a bullish trend. After hitting a low around $17.29, AVAX has shown significant recovery, forming a solid ascending trendline that indicates sustained buying pressure.

The recent price action has taken AVAX to a key resistance level at R1 ($33.18), where it is currently testing this threshold. A break above this level could see the price move towards R2 at $38.98, which represents a previous high point and a psychological resistance level.

Support levels are crucial in my analysis to gauge where the price might find a floor if a pullback occurs. S1 at $26.89 and S2 at $17.59 represent critical zones where buyers previously stepped in. A drop below S1, however, would require me to reassess the bullish scenario, while S2 offers a stronger historical support level that might serve as a robust fallback if a more significant retracement unfolds.

From a technical standpoint, the Stochastic RSI is nearing overbought territory, suggesting potential for a short-term pullback or consolidation before further upward movement. Additionally, the MACD histogram shows decreasing momentum, which aligns with the need for cautious observation of price action near these critical resistance levels.

Given these observations, my strategy involves closely watching the reaction at R1. A decisive close above this resistance with increased volume would confirm the strength behind the current uptrend and could provide a favorable opportunity for a long position aimed at R2. Conversely, should AVAX fail to breach R1 and shows signs of reversal, I would consider securing profits and preparing for a possible re-entry at lower support levels.