Published 6 hours ago
On June 24th, the Avalanche (AVAX) buyers breached the six-week-long resistance trendline with a long bullish candle. The retest reversal synced with the recent sell-off extended the downfall by more than expected, reaching $16. However, the flipped support has triggered the continuation of the bullish rally, aiming the nearest target at $22.13.
Key points:
- The sustained buying should surge AVAX price by 27.7%.
- The Bollinger Band indicator’s midline stalls the bullish recovery rally
- The intraday trading volume in AVAX/USD is $378.9 Million, indicating a 70% fall.
Source- Tradingview
Over the past six weeks, the AVAX/USDT pair lowered in response to a descending trendline. The downfall marked a new 2022 low at $13.79, where demand pressure propelled a 53% recovery.
The bullish rally breached the resistance trendline and reached a $22.13 mark; however, the June end sell-off slumped the AVAX price 26.1% lower and retested the breached trendline. As a result, the coin price rebounded from this support, suggesting the flip in markets trader’s sentiment from selling on rallies to buying on dips.
The post-retest rally showed three consecutive green candles and surged the altcoin by 11%. If the buying pressure persists, the AVAX price will climb another 27.5% to challenge the weekly resistance of $22.13.
However, the buyers need to reclaim this level to get a better confirmation of a recovery rally. In favorable bullish scenario, the technical setup hints the AVAX price should hit the $38 mark.
However, a long retest phase backed by high volume activity suggests the sellers have not thrown in the towel yet and could pull the coin price back to $14.6
Technical indicator
Contrary to the falling price, the MACD indicator shows the rising fast and slow, indicating the rising bullish momentum. Moreover, sustained buying could lead these lines above the midline, providing additional confirmation for long buyers.
The AVAX price currently trades at $17.26 and faces supply pressure from the Bollinger Band indicator’s midline. The coin price trading below this neutral line indicates a bear trend.
- Resistance levels: $22.1 and $27.8
- Support levels: $14.6 and $10
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.
Source: https://coingape.com/markets/avax-price-analysis-breakout-rally-eyes-22-1-mark-buy-now/