Avalanche Price Analysis: Can Channel Breakout Lead AVAX To $38?

Avalanche(AVAX) price has steadily fallen, responding to a falling parallel channel pattern. The downward spiral dumped the altcoin to a $14 low, offering enough demand pressure for another bullish cycle within the pattern. Can the potential rally hit the $38 mark?

Key points:

• The AVAX jumps from $14 support with a tweezer bottom candle
• Falling parallel channel breakout may pump AVAX price by 115%
• The intraday trading volume in AVAX/USD is $581.5 Million, indicating a 4.2% gain

Source- Tradingview

Following a drastic fall from April to Mid-May which plunged the AVAX/USDT pair to the $28 mark, the coin chart started to shape the falling price inside a parallel channel pattern. The altcoin has resonated inside this pattern for nearly five weeks and registered a 60.6% loss.

Furthermore, June’s second-week crypto crash bolstered the ongoing selling pressure and plummeted the AVAX price to a new 2022 low of $13.9. However, amid the largest cryptocurrencies reclaiming the $20000 mark, the AVAX shows sustainability above the $14 mark.

On June 19th, the AVAX price rebounded from the $40 support and surged 18.6% higher. The coin price currently trades at $17.39 and continues its march towards the channel pattern resistance.

If the buying pressure persists and breaks the dynamic resistance trendline, the buyers may drive the AVAX price 115% higher to $37.5.

However, until a genuine breakout is not achieved, AVAX sellers could carry the downward spiral to even lower levels.

Technical indicator

The daily-RSI slope escapes from the oversold region but takes a lateral shift in trend as the market price struggles to rise above the resistance trendline. Moreover, the RSI line jumps above the 14-SMA and indicates rising bullish momentum.

The falling price trend influences highly on the daily EMAs(20, 50, 100, and 200), resulting in a bearish alignment.  

• Resistance levels: $21.8 and $27
• Support levels: $75.6 and $50