Avalanche Price Analysis: Reversal Pattern May Soar AVAX By 26%

The Avalanche (AVAX) coin listing announcement on Robinhood caused a 10.63% gain earlier today. These gains add to the prior six days winning streak, registering a 27.5% rally. Moreover, the bullish recovery knockouts another resistance of $27.85, indicating the buyers are attempting another leg higher.

Key points: 

• The rounding bottom pattern may bolster buyers to surpass the $32 mark
• A long-wick rejection at 100-day EMA may present a $28.5 breakout
• The intraday trading volume in Avalanche coin is $992.5 Million, indicating a 20% gain.

Source- Tradingview

The AVAX/USDT pair showcased a steady recovery rally in response to a rounding bottom pattern. The altcoin, currently trading at the $29.37 mark, registers a 112% gain in the past two months.

Amid this recovery, the bull run has pierced multiple resistances and the $27.85 barrier just today. With a 20% hike in volume activity, the buyers are interested in this breakout opportunity, indicating another leg up for AVAX price.

A candle closing above the $27.85 level will flip it to potential support and bolsters the bullish rally.  Therefore, the sustained buying momentum will drive the AVAX price 9.5% higher to hit the $32 supply zone. 

However, this may not be the end of AVAX’s bull cycle, as the coin price should rise to $37.13 neckline resistance under the influence of a bullish reversal pattern.

While things favor Avalanche(AVAX) buyers, the higher price rejection attached to the daily candle indicates the sellers are reverting the higher prices. Thus, a candlestick closing below the $27.8 mark could plunge the altcoin below the $20 support, which will invalidate the bullish thesis.

Technical indicator

MACD indicator: the increasing spread between the fast and slow slopes reflects growth in underlying bullish. 

Bollinger Band: the AVAX price trading above the indicator’s upper band indicates overextended buying from traders. Such an act may usually cause a minor correction in the midline or stall the recovery for a certain period.

• Resistance levels: $32.7 and $37.1
• Support levels: $22.11 and $20.3