Published 13 hours ago
Avalanche price registered gains for the sixth straight day today. The price break the consolidation and tested the highs of $21.96. However, the price retraced swiftly after making the recovery. Currently, it hovers near the initial level thus forming a Doji candlestick, which suggests a tug of war between bulls and bears.
As of publication time, AVAX/USD is reading at $21.01, up 1.45% for the day. The volume rose exponentially above 120% to $662,627,765. This is a bullish sign.
Avalanche price set the base for the next move
Avalanche price increased by 4.83% in the last week. A bullish reversal pattern occurs near recent swing lows. Earlier, the price was making lower lows and lower highs, or we can say that forming a “Drop-base-Drop” rally. Where the price starts to fall and found itself in a consolidated zone, and after spending some time in that, breaks below the support and continues to fall, as shown in charts.
However, after falling from the highs of $30.85, the price finally found its bottom near $17.51, even forming a “Double Bottom” pattern.
The current scenario changed the bearish momentum to a bullish reversal, by giving a breakout above the consolidated zone. According to the structure, the expected upside move in the price could be high at $30.85, the swing high.
The price might face minor hurdles while reaching its ultimate target. Some of the resistance AVAX’s bull will face are $23.62, $26.50 & then $30.85. Whereas the support will also shift to higher levels along with the price bullish momentum. The safest support the price can take is the $18.00 level.
AVAX on the four-hour chart is currently facing resistance near $22.00 The price seems to be taking a pause before breaking above the resistance line. Support has now become a resistance after breaking below it on August 26.
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However, on the other hand, a daily closing below the $19.80 level could invalidate the bullish outlook. And the price could drop lower toward $18.00.
Avalanche is bullish on multiple time frames. Above $22.00 closing on the hourly time frame, we can put a trade on the long side.
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/this-bullish-breakout-hints-22-gains-in-avalanche/