-
Avalanche’s AVAX crashed as the Luna contagion risks hit the cryptocurrency.
-
Buyer interest in AVAX is high at the $16 level.
-
Investors should consider buying at low prices.
Avalanche AVAX/USD is one of the cryptocurrencies that crashed alongside LUNA. The cryptocurrency fell by double digits at the same time LUNA and UST crashed. Investor fears grew since Avalanche was one of the cryptos held as reserves by the Luna Guard Foundation. Following the crash, AVAXtouched a low of $16 on June 13 from a high of above $100 in early April.
Avalanche’s token AVAX should be on the bucket list of investors. The cryptocurrency has been robust since June 13, holding a key zone at $16. Whether this indicates a price bottom is yet to tell as the crypto sector remains bearish. Nonetheless, the month-long consolidation suggests buyer interest. As such, we believe AVAX is attractively priced for a good buy.
Avalanche looks set to break past $21 for a bull rally
Source – TradingView
From the technical outlook, AVAX is consolidating. However, it is slightly bullish, with 24-hour gains of more than 6%. The MACD indicators are bullish too. At the current price of $18, we expect AVAX to continue rising. The $21 resistance will hold back the price, with the cryptocurrency testing the level twice in 30 days. If AVAX overcomes the $21 resistance, it could end its bearish market and begin a bullish rally. Investors should consider buying now to lock value before the market takes off.
Concluding thoughts
The crypto sector remains bearish. At the low valuation of AVAX, we think it is a good buy for long-term investors. Buyer interest is high at the $16 support and could offer a bullish catalyst. AVAX could begin a lasting bullish reversal if it clears the $21 level.