AVAX Technical Analysis: Reversal Aims Triangle Breakout: Is It Too Early to Buy?
AVAX is the native coin of Avalanche. The token is a hard-capped, rare, limited asset that is used to pay charges, protect the platform with staking and also serve as a fundamental account for the subnets on Avalanche.
Avalanche is the most efficient smart contract platform in the world of blockchain, according to time-to-finality. It's extremely quick, cost-effective, and environmentally friendly.
Let us move ahead to read about the Avalanche technical analysis.
Past Performance of AVAX
AVAX coin price shows a growth of 20% in the past 72 hours from the demand met near the support zone at $80. However, the price action forms a descending triangle in the daily chart after the rejection from the $150 mark. Therefore, the recent reversal can shortly reach the resistance trendline.
The constant support from the $80 support and the long-coming resistance trendline keeps the triangle intact and traps momentum within. Therefore, the breakout of either side can find a burst in trend momentum.
AVAX Technical Analysis
The AVAX coin price action forms a bullish follow-through candle in the daily chart, reflecting growth in buying pressure. Therefore, if the buying pressure sustains, the bull might overcome the selling pressure at the resistance trendline.
The AVAX price action indicates resistance levels at $120 and $150 after the 50-day EMA. The support levels are at $80 and $60, which can halt a downfall if the price fails to sustain.
The crucial EMAs (50, 100, and 200) keep a positive alignment in the daily chart. The price action finds support near the 100-day EMA but remains under the 50-day EMAs. The breakout of which will increase the bullish attention and help in pattern breakout.
The RSI indicator at 45% shows a short dip due to the failure to surpass the central line. However, the slope finds support at the 14-day SMA and can shortly resume the uptrend.
The MACD indicator shows a change in direction in the MACD line as it plans to give a bullish crossover with the signal line. The falling intensity of bearish histograms reflects a fall in underlying bearishness.
Upcoming Trend
The growth in the buying pressure from the demand met near the support zone at $80 results in the bullish recovery for the AVAX coin. Moreover, the technical indicators showcase a high possibility of a bull run with the triangle breakout.
Therefore, traders can find entry opportunities at current prices with a target near the resistance trendline. However, safe traders can find an entry opportunity at the triangle breakout with the target at $150.