Can Channel Breakout Lead AVAX To $38?

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Published 2 hours ago

Avalanche(AVAX) price has steadily fallen, responding to a falling parallel channel pattern. The downward spiral dumped the altcoin to a $14 low, offering enough demand pressure for another bullish cycle within the pattern. Can the potential rally hit the $38 mark?

Key points:

  • The AVAX jumps from $14 support with a tweezer bottom candle
  • Falling parallel channel breakout may pump AVAX price by 115%
  • The intraday trading volume in AVAX/USD is $581.5 Million, indicating a 4.2% gain

AVAX/USDT ChartSource- Tradingview

Following a drastic fall from April to Mid-May which plunged the AVAX/USDT pair to the $28 mark, the coin chart started to shape the falling price inside a parallel channel pattern. The altcoin has resonated inside this pattern for nearly five weeks and registered a 60.6% loss.

Furthermore, June’s second-week crypto crash bolstered the ongoing selling pressure and plummeted the AVAX price to a new 2022 low of $13.9. However, amid the largest cryptocurrencies reclaiming the $20000 mark, the AVAX shows sustainability above the $14 mark.

On June 19th, the AVAX price rebounded from the $40 support and surged 18.6% higher. The coin price currently trades at $17.39 and continues its march towards the channel pattern resistance.

If the buying pressure persists and breaks the dynamic resistance trendline, the buyers may drive the AVAX price 115% higher to $37.5.

However, until a genuine breakout is not achieved, AVAX sellers could carry the downward spiral to even lower levels.

Technical indicator

The daily-RSI slope escapes from the oversold region but takes a lateral shift in trend as the market price struggles to rise above the resistance trendline. Moreover, the RSI line jumps above the 14-SMA and indicates rising bullish momentum.

The falling price trend influences highly on the daily EMAs(20, 50, 100, and 200), resulting in a bearish alignment.  

  • Resistance levels: $21.8 and $27
  • Support levels: $75.6 and $50

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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