Price Analysis

Avalanche Price Rally Eyes $90 As Buyers Clear 600-day Resistance

The Avalanche price breakout from the neckline resistance of the cup and handle pattern signals a change in market dynamics.

Published by

Sahil Mahadik

Published 12 Mar, 2024 | 07:35:38 PM UTC

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?

Avalanche Price| Tradingview

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.

Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

Published by

Sahil Mahadik

Published 12 Mar, 2024 | 07:35:38 PM

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