AVAX Price Plans Bearish Trap Breakout With A Double Bottom

With the dreams of reaching $100 delayed, the AVAX price in the correction phase now aims to avoid any further correction below $30. As the downtrend now accounts for a 50% decline, the altcoin forms a bearish channel pattern in the daily chart. 

As the adamant buyers avoid a drop below $30, the underlying gear shifts towards a bullish reversal. With the market anticipations of an altcoin season growing every day, the possibility of Avalanche reaching $100 in 2024 cements. Find out more in our AVAX Price Prediction, sharing a long-term analysis. 

Double Bottom Reversal Eyes Channel Breakout

With a bullish stronghold at the $30 mark, the AVAX price manages to avoid further downfall. As the bullish slowdown in the top coins becomes evident, Avalanche struggles to overcome the constant rise in supply. 

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During the 50% pullback phase, the altcoin price reverted from the $60 mark to test the $30 mark. However, the high demand at lower levels teases a double-bottom formation to reverse the bearish trend. 

With a reversal, the AVAX price could give a bullish breakout of the falling channel pattern. Currently, the altcoin trades at $34.59 as it challenges the overhead trendline, teasing the sideline traders. 

Technical indicators: 

MACD: The MACD and signal line showcase an uptick teasing a resurface above the zero line. Further, the intertwined lines tease a bullish crossover. 

RSI: The daily RSI line showcases a bullish divergence in the daily chart, increasing the likelihood of a bullish turnaround. 

Will AVAX Price Cross $50?

An increasing likelihood of a bullish breakout in Avalanche as the market anticipates a bounce back brings an excellent entry point for sideliners. Further, the momentum indicators support the bullish thesis. 

In case of a breakout, the uptrend can result in a jump to $50 or the 50% trend-based Fibonacci level. On the downside, a crash under $30 might prove fatal and drop the market price to $20.