AVAX Technical Analysis: Wedge Pattern Recharges The Bullish Hope 

Key technical points:

Past Performance of AVAX

As mentioned in our previous article, AVAX prices dip below the psychological support threshold of $50 following an unsuccessful attempt by bulls to break the $67 mark. After breaking under the psychological mark the reversal rally finds support level of $20, which results in a smaller price rejection that pushes the upwards to $25. The decline is 60% in one week, but the long-tail patterns at $25 were a good starting point for the bullish reversal that tests the $36 level.

Source-Tradingview

AVAX Technical Analysis 

The increase in the underlying bullishness helps the AVAX prices form higher lows and generate a rising wedge pattern. However, the formidable sellers controlling the $36 level knockdown bullish breakout attempts.

The Bollinger bands converge in the 4-hour technical chart representing a consolidation in a shorter time frame. However, the bullish pattern increases the breakout chances of the upper band which will unleash the trapped momentum on the upside. 

The solid uptrend in RSI values starts from the oversold territory and trends higher above the halfway line, with the 14-days average line providing support. Moreover, the RSI reflects a bullish divergence in the last two peaks at $36, increasing the breakout probability. 

The MACD indicator projects a bullish resurgence as the fast and slow lines avoid a bearish crossover and restart the approach to the zero line. This increases the chances of a bullish breakout as the recharged bullish histograms reflect an increase in buying pressure.

In short, the AVAX technical analysis depicts a high possibility of a $36 breakout.

Upcoming Trend

Presuming the buying pressure grows later in the day, we can see the AVAX market value surpassing the $36 mark. This will start a breakout rally which may find the next bearish opposition at $50, considering it surpasses $40. However, a bearish breakdown rally can retest $20 after breaching $27.

Support Levels: $27 and $20

Resistance Levels: $36 and $50