Key Takeaways:
AVAX price surged toward $12 before correcting lower.
It is trading above a crucial bullish trend line with support at $9.75 on the 4-hour chart.
There could be a fresh rally without a break below the $9.75 support.
AVAX Price Prediction: This Support Could Refuel Avalanche’s Rally Read CoinChapter.com on Google News
NEW DELHI (CoinChapter.com) — Avalanche’s AVAX rallied over 20% in the past few days before trimming gains. It is now approaching crucial support and might start a fresh surge.
Avalanche’s AVAX Price Rally Fades After Stars Arena Hack
This past week, we saw a strong increase in AVAX price from the $9.15 support zone. The price gained over 20% and broke many hurdles near the $10 level, outperforming Bitcoin and Ethereum.
There was a steady increase above the $10.80 level and the 50 simple moving average (blue, 4 hours). Finally, it spiked toward $12 before the bears appeared. A high was formed near $11.84 before the price started a sharp downside correction. The recent sharp pullback occurred after Avalanche upstart Stars Arena was hacked and drained of nearly $3 million.
There has been a major security breach with the smart contract. We're actively checking the issue. DO NOT deposit any funds. Stay tuned for updates.
— Stars Arena (@starsarenacom) October 7, 2023
The price trimmed most gains and declined below the $10.50 support. There was a move below the 50% Fib retracement level of the upward move from the $9.15 swing low to the $11.84 high.
AVAX price 4-hour chart | Source: AVAXUSD on TradingView.com
The decline even pushed AVAX below the 50 simple moving average (blue, 4 hours). However, the price is now approaching crucial support at $9.75.
A crucial bullish trend line is forming with support at $9.75 on the 4-hour chart. The trend line is close to the 76.4% Fib retracement level of the upward move from the $9.15 swing low to the $11.84 high.
If there is a downside break below the trend line support, Avalanche could accelerate lower. In the stated case, the price could revisit the $9.15 low. Any more losses might open the doors for a drop toward the $8.50 level.
Another Rally?
Conversely, AVAX’s price could start a fresh rally from $9.75. On the upside, immediate resistance is near the $10.20 level. The next major resistance is near the $10.50 level.
A clear move above the $10.50 resistance zone could set the pace for another major rally. In the stated case, the price could test the $11.20 level. Any more gains might open the doors for a move toward the $11.85 resistance.
Overall, AVAX price is trimming gains and approaching key support at $9.75. If the bulls remain in action, it could rally again above the $10.20 resistance. If not, there could be a fresh bearish wave toward the $9.15 zone or even $8.50.
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