AVAX Technical Analysis - Will AVAX Break Above The Bearish Channel?
With altcoins showing a recovery rally as the BTC prices bounce above the $20K mark, AVAX prices may shortly start an uptrend. The channel breakout will act as a bullish launchpad, kickstarting the uptrend and providing a high reward entry point.
Well, well welcome back traders to our channel Cryptoknowmics!
This is Megha Chhikara, back with yet another analysis for your better understanding!
Today, we’ll be reading about Avalanche, as it shows a bull cycle starting within a falling channel and try to figure out if it will break above the resistance trendline. Watch the entire video till the end to learn more about the upcoming trend in Avalanche, and don’t forget to hit the subscribe button!
Currently, AVAX’s market value is $17.32 at 9:30 GMT, displaying the start of the bull cycle in the channel as it has increased by 12.16% in the past 24 hours!
Let’s see what the graphs have to say about AVAX today!
https://www.tradingview.com/x/wAEdT0vi/
AVAX Prices have consistently declined due to a fall in the parallel channel visible on the technical chart. The downward spiral drove the aAVAX coin towards the low of $14, leading to a dip towards the trendline support. But the lower price rejection near the trendline and the tweezer bottom pattern hint at the possibility of a bullish reversal.
This AVAX Price action is a sign of the bull market struggling to begin its journey due to the high price decline within the weekly candle signaling an increase in the selling pressure. Therefore, those hoping for a Bullish Reversal should be patient with the resistance trendline break.
The market price trades between the middle and lower bands of Bollinger band indicators, signaling a solid selling market. In addition, the midline has moved together with the trendline of resistance, signifying an area of high supply.
The daily-RSI line is released from the oversold zone but moves in the opposite direction as the market price struggles to break the resistance trendline. In addition, the RSI line increases over the 14-SMA, which signals an increase in the bullish momentum.
The MACD and signal lines on the daily chart return to the bullish alignment while the positive histograms resume trend momentum. So, traders can expect the trend to be bullish, to begin with, with the return of positive histograms.
So all in all AVAX technical analysis shows an extremely high probability of continued trend in that bearish pattern.
If the buying pressure persists, AVAX prices will break the trendline of dynamic resistance and eventually reach the $28 mark. Conversely, if they fail to break the $20 mark will lead to an increase to $12.
As the session comes to an end, i hope we’ve got most of your queries, if not kindly do let us kow in the comment section and we might come up with a solution for you!
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