The Avalanche (AVAX) price shows signs of a completed correction but has not confirmed its bullish reversal yet.
AVAX is the native token of the Avalanche network, a blockchain platform that specializes in smart contracts. The AVAX price has fallen since reaching an all-time high of $147 in November 2021. The decrease led to a low of $10.54 in December 2022. The price has increased since.
In January, the digital asset reclaimed the $15.50 horizontal area and validated it as support this month.
While the price action shows bullish signs, the weekly RSI remains below 50 (red circle). Therefore, the long-term trend is not bullish yet.
AVAX has also followed a descending resistance line since August 2022. Whether it breaks out from the line or falls below the $15.50 area could determine the future trends direction.
A breakout could lead to highs near $29, while a breakdown would likely lead to lows near $9.
Has Avalanche (AVAX) Price Already Completed Correction?
While the weekly chart provides an uncertain outlook, shorter time frames provide a more bullish outlook. This is especially evident in the six-hour one.
There are several reasons for this.
Firstly, the price reclaimed the 0.618 Fib retracement level at $15.30 after previously deviating below it. As seen in the weekly time frames, such deviations are considered bullish development.
Secondly, the six-hour RSI generated bullish divergence (green line). This is another sign associated with bullish trends.
Finally, it seems that the price has completed an A-B-C corrective structure. If so, another upward movement has now begun. This count would be confirmed by an increase above the wave A low (red line) at $16.84. In that case, the AVAX token price would be expected to break out from the previously outlined resistance line and increase toward $29.
To conclude, the most likely Avalanche price forecast is a breakout from a long-term descending resistance line and an increase toward $29. A movement above $16.84 would confirm this. On the other hand, a weekly close below $15.50 would invalidate this outlook and could lead to a fall toward $9.
For BeInCrypto’s latest crypto market analysis, click here.
Sponsored
Sponsored
Disclaimer
BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
Source: https://beincrypto.com/avalanche-avax-price-could-completed-correction/