Published 3 hours ago
On July 18th, the Avalanche (AVAX) price gave a decisive breakout from the $22 resistance indicating the buyers are ready for another leg up. The ongoing retracement phase amid the falling BTC price retest the breached resistance. However, the traders should wait for a reversal sign at this potential support before entering a bullish trade.
Key points:
- The post-retest rally may surge AVAX price by 26.2%
- The $21.2 breakdown may offset the recent recovery
- The intraday trading volume in Avalanche coin is $518.2 Million, indicating a 16.4% fall.
Source- Tradingview
The AVAX/USDT pair recovery rally initiated when the price bounced back from the $13.79 low on July 19th. The run-up has reclaimed the $16 mark and quite recently the $22.1 resistance. On July 22nd, the altcoin marked a record high at $26.1 and reverted immediately, displaying long-wick rejection.
The current retracement could be caused by profit booking from short-term traders and has plunged the AVAX price by 15.3%. However, this retest phase accompanied by decreasing volume activity indicates the traders are better interested in long positions.
Furthermore, the AVAX price retests the breached resistance of $22.1, aligned with the 20-day EMA slope. This accentuates a high area of interest that could resume the revealing recovery rally.
Thus, a bounce back from $22 flipped support could drive the coin price 26.2% higher to hit the $28 mark.
While things look better on the buyers’ side, a daily candle closing below $21.2 would invalidate the bullish thesis and plunge the AVAX price back to the $16 mark.
Technical indicator
RSI indicator: the daily-RSI slope nosedived below the 20 SMA but still sustained above the midline, indicating the market sentiment is bullish. Bollinger band indicator: the coin price reverted from the indicator’s upper band suggests a normal retracement in a recovery rally. Furthermore, the midline approaching the price may replenish the bullish momentum to continue the bull run.
- Resistance levels: $28 and $32.2
- Support levels: $22 and $16
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/avalanche-price-analysis-can-22-support-halt-avax-correction/