As Another Altcoin In A Wedge, AVAX Price Eyes 15% Jump

Published by

Sohrab Khawas

June 21, 2024

With a repeating pattern in the crypto market, the top altcoins under the pullback phase form a bearish wedge pattern. However, as the end of correction phase match their timings, AVAX and other altcoins price present a bullish reversal.

Following the correction spree, the recent surge in demand prepares a bullish turnaround to surpass the $30 mark. Will the positive trend in the Avalanche token result in a bull run and a breakout rally in the coming week? Find out more in our AVAX Price Prediction.

AVAX Reversal To Test Failed Supports

With a higher price rejection last night, the AVAX price fails to sustain the high at $28.87. As a result, the Avalanche token slides down to end the day at $27.56, accounting for a 2.34% jump. Further, this marks the second consecutive positive day and creates a morning star pattern near the $26 base.

Tradingview

As mentioned before, the AVAX price action shows a falling wedge in the daily chart and the altcoin takes support from the base trendline. Hence, the bulls are asserting dominance at the confluence of trendline and $26 base.

With a 3.84% rise, the Avalanche token trades at $27.65 with a minimal intraday move, lacking momentum for trend continuation. However, the trading volume has increased by 25% over the last 24 hours, reflecting an ongoing brawl for trend control.

Technical indicators:

EMA: During the 27% drop in 14 days, the bearish influence over the AVAX price trend led to the 50D EMA crossing under 200D EMA. This marks a death cross in the daily chart, singaling a bear rush at play.

RSI: Unlike the EMAs, the daily RSI line shows a bullish divergence as it reverses from the oversold zone. With the bounce back, the momentum indicator reveals an increment in buying pressure.

Will AVAX Price Achieve $50 Milestone?

As the altcoin takes support from the base trendline, the upcycle chances are strong in the AVAX price. However, the dominant bearish influence at higher price levels could result in a downtrend continuation.

Until then, the Avalanche token can test the overhead resistance near $32.

Sohrab Khawas

Sohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.