Key technical points:
The bullish failure to surpass the $22 mark led to a retracement at the $15 mark within a week to retest the breakout of the following channel Patil. The Lower price rejection and the morning Star pattern propel the AVAX market price, leading to a double bottom pattern formation. Hence the traders can expect the bullish reversal to reach the neckline at the $22 mark.
Source- Tradingview
The 17% jump in the last four days increases the likelihood of a prolonged uptrend in the AVAX prices. Moreover, we can see an increase in the intraday trading volume trend supporting the bullish reversal. Despite the following channel pattern, the MACD indicator showcases a bullish trend in the fast and slow lines. Hence the Indicator showcases A solid underlying bullish sentiment ready to take over the trend control.
The RSI indicator shows the slopes of passing the 14-day Average line with a rounding Reversal in the nearly oversold zone. Moreover, the bullish divergence in the RSI indicator increases the possibility of a bullish trend surpassing the $22 mark. That is why the technical indicators maintain a bullish point of view for the upcoming trend in the avalanche market prices. In a nutshell, the AVAX technical analysis Forecasts a double-bottom breakout rally leading to a new bullish trend in motion.
The bullish breakout of the double bottom pattern will skyrocket the AVAX Market price sharply by almost 30% to reach the $28 mark. Conversely, a bearish retracement from the $22 resistance level will lead to further sideways motion between the $15 and $22 range.
Resistance Levels: $22 and $28
Support Levels: $15 and $12