Reversal within this Pattern may Lower AVAX By 15%

Reversal within this Pattern may Lower AVAX By 15%


Avax

Published 41 mins ago

The V-shaped recovery in the AVAX/USDT pair shows a bull cycle within the ascending triangle pattern. The bullish rally pushed the coin price to a $22-21.2 mark to rechallenge this weekly resistance. Furthermore, a decisive breakout above the mentioned barrier would trigger the triangle pattern for a potential rally to the $27.8 mark.

Key points: 

  • The shooting star candle at $22 resistance indicates the high supply pressure
  • The recent price jump reclaims the 20 and 50 DMAs
  • The intraday trading volume in AVAX/USD is $548.7 Million, indicating a 6.77% fall.

AVAX/USDT ChartSource- Tradingview

Amid the widespread uncertainty in the crypto market, the AVAX price shows a ray of hope to its holders with the formation of an ascending triangle pattern. Furthermore, the coin price represents its neckline resistance at the $22-$21.2 mark, limiting the bullish growth since last month.

However, the higher low formation in the price action indicates growth in underlying bullish which should eventually breach the $22 supply zone. On July 13th, the AVAX price rebounded from the support trendline with a morning star candle and jumped 25.2%

The recovery rally hits the $22-$21.2, displaying another attempt to breach this resistance. However, the selling pressure at this level remains active and reverted the AVAX price with long-wick rejection.

Today, the AVAX price is down 1.18%, showing a shooting star candle at $22 resistance. This bearish reversal candle shows early signs of reversal, which could trigger another bear cycle within this pattern.

Alternatively, a less likely possibility of a bullish breakout from the $22 barriers could shoot the altcoin 31% higher to %27.8.

Technical indicator

RSI indicator: While the price action is still struggling to surpass its overhead supply zone, the daily-RSI slope jumped above the neutral line, indicating positive sentiment is returning to AVAX. This trending RSI bolsters the bullish breakout theory. 

Vortex indicator: following a bullish crossover, the sharp spread between the VI+ and VI- slopes projects aggressive buying from traders. 

  • Resistance levels: $22 and $27.8
  • Support levels: $16 and $13.77

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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