AVAX Price Hits Emergency Brakes Before $40, Reversal Looms!

Starting the week in a bearish mode, Bitcoin tumbles down to the $42K support with a double top reversal in the 4H chart. As the BTC price fails to cross the $45K barrier, Altcoins will enter a short pullback phase and take a short step back. Like the market trend, the AVAX price trend fails to cross the $40 mark. 

Despite the sharp trend reversal in the last two months, the Avalanche price shows a 4.92% pullback this Monday. However, the long-tail formation reflects a bullish attempt for a comeback and supports the bullish AVAX price prediction. 

Source – Tradingview

Ending the consolidation in the weekly timeframe, the sharp increase in buying pressure leading to the 300% jump in the last eight weeks, AVAX price remains a top gainer in the altcoins world. The bullish simulation supporting the entire crypto market supports the uptrend and boosts the sentiments around Avalanche. 

Further, the growing network strength of the Avalanche ecosystem supports the significant rise in the market value of the AVAX token. As the network strength improves, the buyers willingly pay more premium for the native token, driving its market value higher. 

Currently, the Avalanche price trades at $35.23 and forms a long-tail candle despite the 4.92% intraday drop. 

Technical indicators: 

MACD: The MACD and signal lines in the weekly chart remain on the upbeat track and diverge after the bullish crossover. With the support of the rising histograms, the growing divergence supports the bullish trend in Avalanche. 

Will AVAX Price Cross $40?

While the market recovery takes a short break suddenly, the AVAX price remains active, and the lower price rejection teases a bounce back. Further, the MACD lines signal a strong uptrend with a growing possibility of crossing the $40 mark. 

Moreover, any improvement in the market health can fuel a bull run beyond $40. Under such scenarios, the uptrend can reach the $56 mark. However, the Avalanche market value can retest $30 if the supply increases.