AVAX Price Retest Multi-month Support; Buy Now?

A fallout from the ascending wedge pattern signaled the continuation of the ongoing correction. Therefore, the aggressive selling from the traders breached the $67 local support and sank the (Avalanche)AVAX price to $55-$52 support. However, a bullish divergence in the RSI chart indicates the rising demand pressure at this support.

Key points: 

• The 20 DMA implies constant resistance to the AVAX price
• The RSI-slope shows a significant gap in its bullish divergence
• The intraday trading volume in the AVAX is $1.27 Billion, indicating an 11.5% gain

Source- Tradingview

On April 21st, the (Avalanche)AVAX price offered a fallout from the 3-month-old ascending wedge pattern. Furthermore, the post-retest fall has tumbled the altcoin by 25% and plunged it to multiple months’ support of $55-$52.3 support.

Previously, this support level initiated the November 2021 and Jan-Feb 2022 bull rallies. Therefore, the traders can consider it a strong accumulation zone, providing an excellent opportunity for a long trade.

If the AVAX chart provides a bullish reversal sign at this support, traders can enter a long trade with a stop loss below the psychological mark of $50. Furthermore, the potential rally could retest the 21% higher mark of $67.3, followed by $73.

On a contrary note, a daily-candlestick closing below the $52 would invalidate the bullish thesis and continue the correction rally 23% lower to $40.

Technical indicator

EMAs- The downsloping 50-day EMA nearing a death crossover with 200-day EMA attracts more selling in the market. 

MACD indicator– the MACD and the signal line are drawn quite close to each other, suggesting a potential bullish crossover. This buy signal would encourage more buyers in the market. 

RSI-  the RSI slope shows an evident bullish divergence in the coin chart, indicating a high possibility of a bullish reversal

• Resistance levels- $67, and $73
• Support levels- $52 and $40

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.