Anticipating a Surge: Avalanche (AVAX) Price Poised for Over 50% Gain Following Short-Term Pattern Breakout
The price of Avalanche (AVAX) has bounced from the previous resistance and broken above a short-term pattern. It is expected to continue rising in the near future.
The price of Avalanche (AVAX) has retraced since reaching its yearly high at $50, slightly lower than the significant resistance zone at $55.
This week, the price seems to have found support at the previous resistance zone at $30 and the 20-week EMA (green arrow). Since the 20-week EMA often acts as support for a long-term uptrend, bouncing from it will go a long way in confirming the long-term uptrend.
Currently, it is in the process of forming a bullish pin bar candle. This type of candle often appears at the end of a correction phase.
The weekly RSI has stopped declining and is above 50, indicating that the bulls are attempting to make a comeback.
If the AVAX price bounces, it could rise by 53.84% to the significant resistance zone at $55.
Short-Term Pattern Breakout
The AVAX price has broken above a descending parallel channel formed since the yearly high mentioned above. This indicates that the previous correction phase has ended, and AVAX has resumed the previous uptrend.
The 4-hour RSI has entered the overbought zone and is sloping upward, showing that the bulls have regained control in the short term.
Therefore, the 4-hour chart supports the possibility of the AVAX price bouncing from the weekly timeframe and rising higher. The nearest target is found at $41.
The most likely scenario suggests that the price of Avalanche (AVAX) has completed the correction phase and is continuing the previous uptrend. The immediate target is found at $41, with further potential to reach $55.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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