NewsletterAvalanche Coin Holds Recovery Opportunity With This Bullish Pattern
A V-top reversal from $30.5 resistance tumbled the Avalanche coin price to 0.786 Fibonacci retracement level at $18.2. The coin buyers obtained suitable floating at this level and triggered a 22% rally to $21.88. However, the recent sell-off in the crypto market offsets the AVAX price recovery and threatens further correction.
Key points from Avalanche:
- A bullish breakout from $21.8 will encourage the formation of the aforementioned bullish pattern
- The AVAX sellers reclaim the 20-day EMA slope
- The intraday trading volume in Avalanche coin is $479.2 Million, indicating a 38.5% loss.
Source- Tradingview
Concerning the June-July recovery and August correction, the daily time frame chart showed the formation of a cup and handle pattern. This bullish pattern, often located at the market bottom, gives an effective recovery opportunity upon execution. Thus, for the pattern completion, the Avalanche coin price should breach the neckline resistance of $30.5.
However, the Avalanche price recovery failed to rise above the $21.88 resistance due to the September 13th sell-off, weakening the possibility of pattern completion. Yesterday’s downfall was caused due to the high consumer price index(CPI) data.
Thus, the Avalanche coin price has dropped 12.37% from the $30.5 resistance and currently trades at $19.12. Today, the coin price is up 1.27% but backed by low volume activity, which suggests weakness in bulls’ commitment.
Therefore, if the selling pressure persists, the altcoin could plunge to $18.2 and attempt to break below it. Doing so will extend the ongoing downfall to June’s low support of $13.8.
On a contrary note, if the buyers defend the $18.2 support, the bullish pattern will remain intact, and the possibility of the Avalanche coin price will rise to the $30.5 neckline.
Technical Indicators
EMA’s: the downsloping crucial EMA’s (20, 50, 100, and 200) shows an overall downtrend. Moreover, the 50-day EMA slope is a dynamic resistance to coin price.
RSI indicator: the daily-RSI slope dived below the midline, indicating the market sentiment has turned negative.
- Resistance levels: $22.16 and $26.2
- Support levels: $20 and $16
- Eric Trump Says Now Is a Great Time to Buy Bitcoin Amid Crypto Crash
- Dogecoin, Cardano, Shiba Inu Eye Wider Adoption as Coinbase Announces Perpetual-Style Futures
- Solana News: SOL’s Supply Could Drop Twice as Fast as Disinflation Proposal Goes Live
- Trump Tariffs: White House Prepares Plan B as Crypto Market Awaits Supreme Court Ruling
- Michael Saylor’s Strategy Hints It Will Keep Buying Bitcoin, Citing 2022 Bear Market Playbook
- WLFI Price Soars 17%: What’s Fueling the Surge?
- Dogecoin Price Eyes $0.2 Rally Ahead of Grayscale’s NYSE ETF Debut on November 24
- Crypto Market Eyes Major Rebound as Fed Rate Cut Chances Rise to 71%
- Dogecoin Price Finds Support: Can the 21Shares & Grayscale DOGE ETFs Spark a Surge?
- Will Solana Price Crash Under $100 as Crypto Market Signals Further Downside?
- Ethereum price Drops Below $2,700 as US Jobs Data Hits Rate-Cut Hopes
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
