AVAX Technical Analysis: Channel Breakout Prepares Bullish Launch
Table of contents
Key technical points:
Past Performance of AVAX
During the bloodbath in May, the AVAX price lowered within a falling channel pattern, accounting for a drop of 56% to a low of $15. However, buyers quickly capitalized on the falling trend in trading volume displaying weakness in selling pressure resulting in a reversal. The bullish turnaround breaches the resistance trendline and brings about a bullish breakout of the falling channel.
Source- Tradingview
AVAX Technical Analysis
AVAX price action shows a rising trend as the reversal inflates the market value by 10% in the last 24 hours. However, traders hoping to enter the breakout spot must wait for the price to sustain above $20 to avoid a reversal. The bullish reversal trades under all the crucial EMAs– 50, 100, and 200-day while they remain a falling trend in a bearish alignment. However, the breakout rally can reach the 50-day EMA(red) if the rally sustains above the $20 mark.
The RSI indicator shows a bullish reversal from the oversold boundary, gradually reaching the halfway line. The 14-day SMA shows a sideways trend above the 30% boundary but the bullish influence grows gradually. The MACD indicator shows the fast and slow lines reclaiming a positive trend to the zero line by avoiding a bearish crossover. Moreover, the bullish trend in the histograms resurfaces displaying a rise in buying pressure. In a nutshell, the AVAX price action forecasts a breakout rally surpassing the $20 mark.
Upcoming Trend
Considering the breakout rally sustains above the broken trendline, AVAX prices will skyrocket to $30 if the buying pressure grows.
Resistance Levels: $20 and $25
Support Levels: $15 and $13
