A Bullish breakout from the symmetrical triangle pattern suggests the end of the consolidation period in the AVAX/USDT pair. The potential rally should first hit the $100 resistance, whose breakout will offer another accumulating opportunity for long traders. However, sustaining the current retest phase is needed for the above bullish thesis.
Key points:
- AVAX chart shows long-wick for the descending trendline retest
- The post retest rally could push the AVAX price above the $100 mark
- The intraday trading volume in the AVAX is $2.08 Billion, indicating a 5% gain
Source- Tradingview
During the recent downtrend, the AVAX traders strictly followed a descending trendline to sell on the pullback rallies. This downfall had sunk the altcoin to the $53 mark, indicating a 63.5% loss from All-Time High($146.6).
However, an upcoming ascending trendline limited the excessive loss by supporting the new higher lows in price. The price action resonating between these two converging trendlines revealed the formation of a symmetrical triangle pattern.
Last week’s recovery sentiment in the crypto market rebounded the AVAX price from the support trendline($66.5). The six consecutive green candles from the bottom support obtained 34% gain and breached the overhead resistance trendline.
The altcoin is currently in a retest phase to obtain sufficient demand for further recovery. However, the higher price rejection at this retest phase concern credibility of this bullish breakout.
If the buyers sustain above the downsloping trendline, the resulting rally will challenge the $100 psychological barrier. A follow-up breakout would confirm the bulls’ commitment to lead a genuine recovery.
Technical indicator
The recent recovery rally reclaimed the crucial 50 and 200 DMA. Moreover, these DMAs are nearing a golden crossover which could provide an excellent confirmation to triangle breakout.
The MACD indicator shows the fast and slow have entered the bullish territory, suggesting the rising bullish sentiment.
- Resistance levels- $100, and $125
- Support levels- $78 and $66
Disclaimer
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.
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Source: https://coingape.com/markets/avalanche-price-analysis-triangle-pattern-breakout-sees-avax-price-beyond-100-mark/