Strong

Bitcoin

Resistance

Avalanche

AVAX price rallied over 50% and traded above the $40 level. Avalanche is now correcting gains, but the bulls might remain active near the $32 support zone. 
<ul> 
 <li>AVAX price gained pace above the $30 and $40 levels against the US dollar.</li> 
 <li>The price is trading above $30 and the 100 simple moving average (4 hours).</li> 
 <li>There is a key bullish trend line forming with support near $35.00 on the 4-hour chart of the AVAX/USD pair (data source from Kraken).</li> 
 <li>The pair could continue to rise if it stays above the $35 and $30 support levels.</li> 
</ul> 
<h2 id="avax-price-corrects-lower">AVAX Price Corrects Lower</h2> 
In the past few days, Avalanche’s AVAX saw a strong increase above the $25 resistance zone. It gained over 50% and broke many hurdles near $30. It even cleared the $40 level before the bears appeared. 
A new multi-month high was formed near $43.06 before the price started a downside correction, like <a href="https://www.newsbtc.com/analysis/btc/bitcoin-price-dips-again-38k/" target="_blank" rel="noopener ">Bitcoin</a> and <a href="https://www.newsbtc.com/analysis/eth/ethereum-price-decline-2000/" target="_blank" rel="noopener ">Ethereum</a>. There was a 15% drop and the price traded below the $38 level. There was a move below the 23.6% Fib retracement level of the upward move from the $21.24 swing low to the $43.06 high. 
AVAX price is still trading above $30 and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support near $35.00 on the 4-hour chart of the AVAX/USD. 
<a href="https://www.newsbtc.com/wp-content/uploads/2023/12/AVAX-Price.png?resize=1024%2C468"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-565159" src="https://www.newsbtc.com/wp-content/uploads/2023/12/AVAX-Price.png?resize=1024%2C468" alt="AVAX Price" width="1024" height="468" srcset="https://www.newsbtc.com/wp-content/uploads/2023/12/AVAX-Price.png?resize=1024%2C468?w=1835 1835w, https://www.newsbtc.com/wp-content/uploads/2023/12/AVAX-Price.png?resize=1024%2C468?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2023/12/AVAX-Price.png?resize=1024%2C468?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2023/12/AVAX-Price.png?resize=1024%2C468?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2023/12/AVAX-Price.png?resize=1024%2C468?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2023/12/AVAX-Price.png?resize=1024%2C468?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2023/12/AVAX-Price.png?resize=1024%2C468?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"></a> 
Source: <a href="https://www.tradingview.com/symbols/AVAXUSD/" target="_blank" rel="noopener nofollow">AVAXUSD on TradingView.com</a> 
On the upside, an immediate resistance is near the $38.00 zone. The next major resistance is forming near the $40.00 zone. If there is an upside break above the $38.00 and $40.00 levels, the price could surge over 10%. In the stated case, the price could rise steadily toward the $45 level. 
<h2 id="dips-limited-in-avalanche">Dips Limited in Avalanche?</h2> 
If AVAX price fails to continue higher above the $38.00 or $40.00 levels, it could continue to move down. Immediate support on the downside is near the trend line at $35. 
The main support is near the $32.00 zone or the 50% Fib retracement level of the upward move from the $21.24 swing low to the $43.06 high. A downside break below the $32.00 level could open the doors for a major decline towards $18.80. The next major support is near the $26.50 level and the 100 simple moving average (4 hours) 
Technical Indicators 
4 hours MACD – The MACD for AVAX/USD is gaining momentum in the bearish zone. 
4 hours RSI (Relative Strength Index) – The RSI for AVAX/USD is now below the 50 level. 
Major Support Levels – $35.00 and $32.00. 
Major Resistance Levels – $38.00, $40.00, and $45.00.

AVAX Price Pumps 50% and Dumps 15%, Why Uptrend Is Still Strong

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