The Avalanche (AVAX) price rises for the fourth consecutive day, registering a 15.2% gain. The bull aims to breach the $26.2 resistance and trigger the two-months old cup and handle pattern. What can you expect once the price breaches the neckline resistance?
- The AVAX chart shows high supply pressure at $26.1
- A bullish crossover from MACD indicator slopes encourages a $26.1 breakout.
- The intraday trading volume in Avalanche coin is $594.2 Million, indicating a 14.7% gain.
On July 20th, the AVAX/USDT pair reverted from the monthly resistance of $26.1. Furthermore, the minor correction discounted the altcoin by 25% and formed the handle portion of the cup and handle pattern.
The late July recovery undermined this pullback loss and bolstered buyers to rechallenge the neckline barrier($26.1). However, the AVAX price struggling to break this resistance for nearly three weeks indicates the sellers are aggressively defending it.
Anyhow, even though the prices are yet to surpass this resistance, the higher low formation in the chart reflects growth in bullish momentum. Today, the AVAX price is up 2.65%, showcasing another breakout attempt.
A daily candlestick closing above the $26.1 mark would complete this reversal pattern and further reinforce the recovery rally. As per the technical setup, the post-breakout rally may push the AVAX price to the same length of distance between the bottom support to the neckline.
Thus, the potential rally may surge the prices 42.2% higher to tag the $37.2 resistance.
If the selling persists and the possible retracement nosedive below the 50 DMA, the bullish thesis will be invalidated.
MACD indicator: the multiple crossovers between the fast and slow lines indicate uncertainty in the market. However, these slopes wavering above the neutral slopes reflect the buyers have the upper hand.
DMAs: the pattern’s handle portion bounced back from the 50 DMA slope, indicating it has flipped into suitable support. Moreover, the 100 DMA present at the $26.1 mark will give an extra edge if breached.
- Resistance levels: $26.1 and $28.6
- Support levels: $22.2 and $20
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.