Avalanche Price Rally Eyes $90 As Buyers Clear 600-day Resistance
Highlights
- The AVAX price breakout from a cup and handle pattern signals a major shift in the market trend.
- An uptick in the fast-moving 20-and-50-day EMA indicates the buyers are aggressive.
- The intraday trading volume in Avalanche coin is $2.65 Billion, indicating a 73% gain.
AVAX Price Prediction: AVAX, the cryptocurrency of layer one blockchain witnessed a notable inflow within a week, highlighted by two long green candles in the daily chart. This upswing recorded 33% and surpassed the neckline resistance of the cup and handle pattern at $50. This breakout signals the buyer’s escape from two years-long accumulation and the start of a sustainable uptrend.
What’s Ahead for AVAX after $50 Breakout?
The Avalanche coin is now riding a steady recovery initiated in late January when the price rebounded from $27.24. A V-shaped recovery from this support surged the altcoin 109 within seven weeks to reach $56, while the market cap soared to $21.3 Billion.
An analysis of the daily chart shows this upswing breaks the neckline resistance of the bullish reversal pattern called cup and handle. In theory, this pattern formation is a sign of downtrend bottoming as the emergence of a new recovery.
The Avalanche price has been developing this structure for nearly two years, indicating its breakout to have a long-term effect on the asset. With an intraday gain of 12%, the buyers provide a decisive breakout from the $50 neckline shifting the psychological barrier to a key support. Recent data from Coinglass shows this breakout is accompanied by $2.41 Million of short liquidation indicating the dominance of market buyers.
Sustaining above the flipped support, the AVAX price will rebound for a 60% leap and chase the theoretical target of $90.
However, this recovery is less likely to be a linear trend as the AVAX price is showcasing a pattern of occasional pullback to regain strength for sustainable growth.
The overhead supply pressure may stall the recovery trend at $67.5, followed by $91.
Technical Indicator.
- Exponential Moving Average: The 100-day EMA slope acts as a dynamic support for buyers to accumulate this asset in between dips.
- Vortex Indicator: The increasing spread between the VI+ (blue) and VI- (pink) reflects the buyers continuing to strengthen their grip over this asset.
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