Avalanche welcomed April on a retracement phase that had AVAX dipping from the $104 latest local peak towards the current price near $83. Meanwhile, an ascending support line and descending resistance level underscored the alt’s price action over the past ten days. The resulting triangle formation plus price squeeze suggests an imminent breakout.
Avalanche kept optimistic performance since mid-March. That was when AVAX climbed from the $70 level to cross beyond $100, though briefly from March 30 to April 2. The alt has since dropped some gains due to the current retracement phase that echoes the broad market sentiment. Avalanche’s four-hour chart shows the correction phase hovered in a wedge setup that enters a breakout region at the moment.
The 4hr chart shows the resistance and support levels pushing Avalanche into a contracted consolidation area where the alt reads for breakout toward ether side. Meanwhile, the price action affirmed the setup with a bounce from a support floor.
The Relative Strength Index has hovered beneath 50 over the past 4 hours but remained far from entering the oversold territory. The MFI indicator displays substantial outflows from April 9 to April 10, though it now reflects an upsurge after AVAX touched the support level briefly. Avalanche’s price action remained localized around the support than the plunging resistance.
Avalanche On-Chain Metrics
Avalanche’s weekly market price and trading volume maintain a downside trajectory, matching the bearish action over the same timeframe. Meanwhile, the development activity index shows surged activity from the beginning of the month, touching record highs on April 7 before thinning out. The token’s weighted sentiment metric explores the lowest weekly mark at the moment.
AVAX’s Next Move
Avalanche has dropped nearly 20% from the latest top amidst ongoing correction, and bears might give way to an upside breakout. There’s a breakout chance that may push the altcoin towards oversold situations. That’s if it stretches the correction to over 30%.
The overall crypto market struggles with bearish tendencies. The global market capitalization lost 1.78% over the previous day to $1.94 trillion.
