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.
- Is Changpeng “CZ” Zhao Returning To Binance? Probably Not
- Ripple-Backed Evernorth XRP Treasury’s Holdings Reach $1B Ahead of Nasdaq Listing
- Crypto Market Rally: BTC, ETH, SOL, DOGE Jump 3-7% as US China Trade Talks Progress
- Indian Court Declares XRP as Property in WazirX Hack Case
- Ethereum Supercycle Strengthens as SharpLink Gaming Withdraws $78.3M in ETH
- Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
- Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
- PEPE Coin Price Prediction as Weekly Outflows Hit $17M – Is Rebound Ahead?
- HBAR Price Targets 50% Jump as Hedera Unleashes Massive Staking Move
- Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
