This Bullish Breakout Hints 22% Gains In Avalanche
Avalanche price registered gains for the sixth straight day today. The price break the consolidation and tested the highs of $21.96. However, the price retraced swiftly after making the recovery. Currently, it hovers near the initial level thus forming a Doji candlestick, which suggests a tug of war between bulls and bears.
As of publication time, AVAX/USD is reading at $21.01, up 1.45% for the day. The volume rose exponentially above 120% to $662,627,765. This is a bullish sign.
Avalanche price set the base for the next move
Avalanche price increased by 4.83% in the last week. A bullish reversal pattern occurs near recent swing lows. Earlier, the price was making lower lows and lower highs, or we can say that forming a “Drop-base-Drop” rally. Where the price starts to fall and found itself in a consolidated zone, and after spending some time in that, breaks below the support and continues to fall, as shown in charts.
However, after falling from the highs of $30.85, the price finally found its bottom near $17.51, even forming a “Double Bottom” pattern.
The current scenario changed the bearish momentum to a bullish reversal, by giving a breakout above the consolidated zone. According to the structure, the expected upside move in the price could be high at $30.85, the swing high.
The price might face minor hurdles while reaching its ultimate target. Some of the resistance AVAX’s bull will face are $23.62, $26.50 & then $30.85. Whereas the support will also shift to higher levels along with the price bullish momentum. The safest support the price can take is the $18.00 level.
AVAX on the four-hour chart is currently facing resistance near $22.00 The price seems to be taking a pause before breaking above the resistance line. Support has now become a resistance after breaking below it on August 26.
Also read: Expert Warns Of ‘Issues’ With Ethereum Merge Despite Overall Success
However, on the other hand, a daily closing below the $19.80 level could invalidate the bullish outlook. And the price could drop lower toward $18.00.
Avalanche is bullish on multiple time frames. Above $22.00 closing on the hourly time frame, we can put a trade on the long side.
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