Buyers Eyes $36 Mark following Reversal Pattern

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The Avalanche (AVAX) chart shows a textbook example of a rounding bottom pattern in the daily time frame chart. Under this pattern’s influence, the altcoin today breached the $28.8 resistance, preparing to surge higher. However, the trades have to undermine overhead supply pressure to give a candle closing above this barrier.

Key points: 

  • The long-tail rejection on august 8th suggests the sellers defend the $28.8 barrier with vigor
  • The AVAX chart shows a bullish crossover between the 20-and-50-day EMA
  • The intraday trading volume in Avalanche coin is $891.6 Million, indicating a 6.68% gain.

AVAX/USDT ChartSource- Tradingview

The AVAX/USDT pair shows a phenomenal reversal in the price trend after hitting the low of $14.94 in June 2022. The bullish reversal accounts for a price jump of 118% over the past two months reaching the psychological mark of $30.

The sudden reversal in the price trend shows a rounding bottom pattern with a neckline at the $37 horizontal level. Moreover, the recent bullish engulfing candle breaking the $28.44 level displays an increase in the buying pressure.

Despite the bullish reversal trend gaining momentum, a candle closing above the $28.75 mark will be an essential signal confirming the rounding bottom pattern formation. 

In short, the coin holders can expect the bullish rally to reach the overhead resistance of $37 once a bullish candle closes above the $32 horizontal level.

However, if the market condition goes south, A lateral trend could be observed between the $28.44 and $32.19 horizontal levels. But in a more bearish market, a downtrend retesting the $22 mark is possible.

Technical indicator

DMI indicator: the DI lines Display a huge bullish gap with an increasing trend momentum evident by the positive turnaround in the ADX line.

Bollinger Band: the AVAX price moves above the indicator’s upper band, suggesting the traders have overextended their buying. As a result, the recovery may stall for a while or suffer a minor correction testing the midline.

  • Resistance levels: $32.5 and $36.5
  • Support levels: $26.2 and $20.26

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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