A recent report by IntoTheBlock has highlighted crucial price levels for Avalanche ($AVAX) that investors should monitor.
These levels are identified based on the profitability of current holders and can act as significant support or resistance zones.
Keep an eye on these levels for AVAX👇
🟢The green bubble shows holders currently in profit. It represents 979k addresses aqcuiring 23.5m $AVAX at an average price of $32. This indicates key demand zone and can act as support if price moves to these levels.
🔴The red bubble… pic.twitter.com/806A8YO03K
— IntoTheBlock (@intotheblock) May 29, 2024
- Green Bubble: Demand Zone at $32
The green bubble represents addresses that are currently in profit. Specifically, it includes 979,000 addresses that acquired 23.5 million $AVAX at an average price of $32.
This level is a key demand zone and can act as strong support if the price retraces to these levels. Investors might consider this a buying opportunity, reinforcing the price around this point.
- Red Bubble: Resistance at $48
Conversely, the red bubble indicates addresses that are currently at a loss. This comprises 1.02 million addresses that bought 22 million $AVAX at an average price of $48.
If the price starts to rise, this level may act as significant resistance as holders might sell their positions to break even. This selling pressure could hinder upward momentum, making $48 a critical resistance point to watch.
- Grey Bubble: Supply Zone at $37
Currently, $AVAX is trading near a substantial supply zone marked by the grey bubble. Around 486,000 addresses acquired 19.1 million $AVAX at an average price of $37.
This area could offer significant resistance on an upward move as traders might offload their holdings, exerting downward pressure on the price.
These insights provide a strategic outlook for $AVAX investors. Understanding these support and resistance levels can help in making informed trading decisions, particularly in navigating potential price fluctuations. As the market evolves, keeping an eye on these key zones can offer a tactical advantage in managing investments in $AVAX.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.