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Amid the new year recovery in the crypto market, the Avalanche coin price rebounded from the $10.5 mark and showed steady growth over the last nine days. This V-shaped recovery registered nearly 20% growth and pushed the coin to its current price of $12.7. However, this altcoin is currently hitting the resistance trendline of a long-coming wedge pattern, which could regulate the near future price
Key points:
- Today’s speech from Federal Reserve Chair Jerome Powell could trigger temporary volatility in crypto
- The Avalanche coin needs a bullish breakout from the wedge pattern to begin a sustained price recovery.
- The intraday trading volume in Avalanche coin is $328.6 Million, indicating a 62% loss.
Source- Tradingview
In response to descending wedge pattern, the Avalanche coin price has been steadily falling over the past six months. During the pattern formation, the coin price continues to resonate between two converging trendlines until its breach from the overhead one.
In theory, the price action getting narrower down the wedge pattern reflects the weakening of bearish momentum. Thus, the pattern itself displays the inability of the sellers to bolster a deeper downfall after each successive price cycle.
Thus, the most probable outcome of this pattern is a bullish breakout from its resistance trendline, which triggers a new directional recovery for coin holders.
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Furthermore, with the improving market sentiment, the AVAX price jumped 5% today and reached the resistance trendline of the wedge pattern. Thus, as mentioned above, a potential breakout from the trendline will intensify the bullish momentum and provide an entry opportunity for traders.
The post-breakout rally may witness a quick target of 14% by hitting the $14.6 resistance. However, in ideal bullish conditions, the potential rally may reach the topmost swing high of this pattern which for AVAX price is $30.
Conversely, if the selling pressure in the market persists, the AVAX price may witness another bear cycle which plunges below the $10.5 low.
Technical Indicators
EMA’s: the recent price jump in AVAX reclaimed 20-and-50-day EMA slopes, which may assist buyers for trendline breakout.
RSI indicator: the daily RSI Slope rising high into the bullish territory indicates a confident and strong price recovery.
Avalanche Coin Price Intraday Levels-
- Spot rate: $12.8
- Trend: Bullish
- Volatility: Low
- Resistance levels: $14.6 and $16
- Support levels: $12.3 and $16.7
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