Altcoins
As another Altcoin in a wedge, AVAX price aims for 15%.
In a repeating pattern in the cryptocurrency market, major altcoins in the pullback phase form a bearish wedge pattern. However, as the end of the correction phase corresponds to the times, the price of AVAX and other altcoins presents a bullish reversal.
After the wave of corrections, the recent increase in demand prepares a bullish trend reversal to surpass the $30 threshold. Will the positive trend of the Avalanche token translate into a bull run and breakout rally in the next week? Find out more in our AVAX Price Prediction.
AVAX inversion to test failed media
With a higher price rejection last night, AVAX price fails to sustain the high of $28.87. As a result, the Avalanche token slipped lower, closing the day at $27.56, a jump of 2.34%. Furthermore, this marks the second consecutive positive day and creates a morning star pattern near the $26 base.
As mentioned above, AVAX price action shows a descending wedge on the daily chart and the altcoin draws support from the underlying trendline. Therefore, the bulls are asserting dominance at the confluence of the trendline and the $26 base.
Up 3.84%, the Avalanche token trades at $27.65 with minimal intraday movement, lacking momentum for the trend to continue. However, trading volume has increased 25% in the past 24 hours, reflecting an ongoing tussle for control of the trend.
Technical indicators:
EMA: During the 27% decline in 14 days, the bearish influence on the AVAX price trend led the 50D EMA to cross below the 200D EMA. This marks a death cross on the daily chart, signaling a bearish run in play.
CSR: Unlike the EMAs, the daily RSI line shows a bullish divergence as it reverses from the oversold zone. With the rebound, the momentum indicator reveals increased buying pressure.
Will AVAX price reach the $50 mark?
As the altcoin draws support from the underlying trend line, the chances of upcycling are strong in AVAX price. However, the dominant bearish influence at higher price levels could result in a continuation of the downtrend.
Until then, the Avalanche token can test upper resistance around $32.