Avalanche price (AVAX) rises for the fourth day in a row, posting a 15.2% gain. The bull is aiming to break the $26.2 resistance and trigger the two-month cup and handle pattern. What can you expect once price breaks through the neckline resistance?
- AVAX chart shows high supply pressure at $26.1
- A bullish crossover of the slopes of the MACD indicator encourages a breakout of $26.1.
- The intraday trading volume on the Avalanche coin is $594.2 million, indicating a gain of 14.7%.
Font- business view
On Jul 20, the AVAX/USDT pair reversed from the monthly resistance at $26.1. Additionally, the minor correction lowered the altcoin by 25% and formed the handle part of the cup and handle pattern.
The late July rally undermined this pullback loss and encouraged buyers to re-challenge the neckline ($26.1). However, AVAX price struggling to break this resistance for almost three weeks indicates that sellers are aggressively defending it.
Regardless, even though prices have yet to break above this resistance, the formation of higher lows on the chart reflects a growth in bullish momentum. Today, AVAX price is up 2.65%, showing another breakout attempt.
A daily candlestick close above the $26.1 mark would complete this reversal pattern and further strengthen the recovery rally. Depending on the technical setup, the post-breakout rally can push AVAX price to the same distance between the lower support and the neckline.
Therefore, the potential rally can push prices a further 42.2% to tag the $37.2 resistance.
If the selling persists and the potential pullback plummets below the 50 DMA, the bullish thesis will be invalidated.
MACD indicator: multiple crossovers between the fast and slow lines indicate uncertainty in the market. However, these slopes oscillating above the neutral slopes reflect that buyers have the upper hand.
WFD: the handle part of the pattern bounced off the 50 DMA slope, indicating that it has flipped to a suitable support. Also, the 100 DMA present at the $26.1 mark will give an additional edge if it is breached.
- Resistance levels: $26.1 and $28.6
- Support levels: $22.2 and $20
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication bears no responsibility for your personal financial loss.