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AVAX Forms Falling Wedge Pattern, Is A Bullish Breakout Imminent?

AVAX Forms Falling Wedge Pattern, Is A Bullish Breakout Imminent?

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Avalanche (AVAX) had an amazing run the last few weeks as prices surged over 200%. This price movement put AVAX price at a new high for the first time in many months. Investors have been taking a bullish stance on AVAX as it aims to solve a major problem within the crypto space. The solution AVAX offers is a highly scalable & efficient blockchain that allows for DeFi & dApps to be built upon it, similar to ETH. It also offers a bridge from the ETH blockchain to its own, which is a great solution for interoperability.

While looking at the last month of price action , we can see AVAX price has held a trend line very well. AVAX just bounced off this trend line a couple days ago & seems to be heading for another potential bounce. Over the last two weeks, AVAX price has formed a bullish falling wedge pattern (shown in blue).

If bulls manage to break & hold this falling wedge, price will then have to battle it out at the minor resistance of $48.10. If bulls clear this, the major test is at the resistance zone from $53-$58. If AVAX can clear this zone, it will be off for a new high.

Avalanche Price Analysis: AVAX/USDT 4 Hour Chart

Considering that Avalanche is nearing its mid term trend line, we have to be weary of a potential break below. If bulls fail to provide a bounce on this trend & AVAX breaks to the downside of its falling wedge pattern, we should expect a fall to the major support zone at minimum. Before this can occur, bears must pull AVAX price below the 100MA which has held price up for over a month now. If all these marks get taken out, we should expect $30-$35 to come fairly soon.

While looking at the Stochastic RSI, we can see strength just attempted to break into the overbought region but was quickly rejected. As long as strength can stay above the 50 value, AVAX price is in position to go on to break its falling wedge pattern. The MACD is showing bullish signs as it has formed a bottom curving formation over the last few weeks. Once the MA’s clear the 0 value, AVAX should launch back to its major resistance zone.

AVAX Intraday Analysis

Spot rate: $41.95
Trend: Neutral
Volatility: High
Support: $41.92
Resistance: $48.10

Disclaimer

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.

About Author

Domenic

Domenic Fiore has a love for the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision to become an entrepreneur and wanted to achieve success from a young age. Domenic owned & operated a car detailing business since the age of 16, along with being a part of two CBD businesses through 2018 & 2019. He started his investment and trading career early trading in 2017 when he bought a newly released cryptocurrency alt-coin and saw 10x return in a few months. He then realized there was much potential and dove head first into learning everything he could. He became very passionate about technical analysis and knew it was his route to financial freedom. Over the last 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly after he wanted to help assist in the pursuit of spreading and helping others achieve success in the trading industry.

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