AVAX Hits $53: Will It Break $54.23 Resistance or Pull Back?

Avalanche (AVAX) has shown strong momentum, trading at $53.18 at the time of writing, with a 3.36% increase in the last 24 hours and a 22.40% gain over the past seven days. Market participants are closely watching the token’s performance around key price levels,.

Support and Resistance Levels

Rekt Capital’s analysis focuses on two significant levels for AVAX. The $38.57 level is seen as a natural support area, which could serve as a potential dip point during future retracements. 

However, Rekt Capital suggests that AVAX has been able to rally without retesting this level in recent movements. “That will remain a natural dipping level on a future retrace,” Rekt Capital commented, indicating that a pullback to this level could occur down the line.

Source: TradingView

The $54.23 price point, marked as the March 2024 highs, is viewed as the next resistance level. If AVAX can reclaim and stabilize above this price, there is potential for further upside. “If AVAX is able to reclaim March 2024 highs, then it could rally higher,” said Rekt Capital. This suggests that surpassing $54.23 could signal a bullish continuation for AVAX.

Market Momentum and Technical Indicators

Technical indicators also show positive momentum for AVAX. The MACD (Moving Average Convergence Divergence) has recently formed a bullish crossover, with the MACD line crossing above the signal line. 

This is often seen as a sign of increasing upward momentum. However, the Relative Strength Index (RSI) is around 77, indicating that the token is in overbought territory. This could signal the possibility of a short-term pullback before any further price action.

Source: TradingView

Trading volume has remained high, especially during the recent surge in price, pointing to strong market participation and confidence. As of the latest data, the 24-hour trading volume for AVAX stands at $1.89 billion, a solid indicator of active buying and selling.

Holders and Market Composition

A closer look at AVAX’s holder distribution shows that 81% of holders are currently in profit, while 17% are at a loss. Large holders control 69% of the total AVAX supply, suggesting that the token’s market is concentrated in the hands of a few key players. This level of concentration can sometimes lead to price volatility, as large holders may make significant transactions that impact market trends.

Source: IntoTheBlock

In terms of geographical distribution, 55% of AVAX transactions come from users in the West, while 45% are from the East. This global spread indicates a diverse and widespread user base, which could support long-term growth for the token.

Despite the concentrated ownership and the high RSI reading, AVAX’s strong correlation with Bitcoin (0.82) suggests that its price movements may closely track the leading cryptocurrency. The high-value transactions, particularly those exceeding $100K, further reflect the token’s significant presence in the market.