AVAX Technical Analysis: Post-Retest Reversal Boosts Bullish Hope
Table of contents
Key technical points:
Past Performance of AVAX
As mentioned in our previous article, the Avalanche(AVAX) prices broke the resistance trendline’s influence and beat the 50-day average price. The bullish reversal from $16, accounting for a 50% jump last week, is responsible for breaking the downtrend. However, the price trend took a turnaround from $24.5 to retesting the $22 mark.
Source- Tradingview
AVAX Technical Analysis
The daily candle in the AVAX price chart shows a long-tail formation from $22, reflecting a post-retest bullish reversal. Hence, if the buying pressure sustains, the breakout rally can reach the overhead resistance at the $28 mark. Tomorrow is the if the market price sustains above the 50-day SMA, a jump to the 100-day SMA seems inevitable.
The RSI indicator maintains a bullish view for the upcoming trend as the RSI slope sustains in the overbought territory. Additionally, the 14-day average line crosses above the halfway line indicating an increase in underlying bullishness.
Furthermore, the MACD indicator displays a gradual growth in buying pressure as the fast and slow lines cross into positive territory. In a nutshell, the AVAX technical analysis forecasts a high momentum bullish rally crossing above the $28 mark.
Upcoming Trend
Considering the buying pressure sustains the Avalanche(AVAX) prices above $22, traders can expect an uptrend continuation to the $28 mark. However, a dip under the $22 mark will drop prices to the psychological mark of $20.
Resistance Levels: $25 and $28
Support Levels: $22 and $20