Avalanche (AVAX) Price Could Increase 30% in the Next Few Days, Here’s Why?
The Avalanche (AVAX) price has reclaimed a crucial price level and generated a bullish signal. It is expected to rise by an additional 30% in the near future.
After forming a bullish engulfing pattern during the week of October 16 to 22 (green arrow), the Avalanche (AVAX) price successfully regained the support level established at $10.7-$11 in the previous week.
This move leaves the previous breakdown below the $10.7-$11 zone as a deviation (blue ellipse). Such deviations are considered bear traps and are often followed by a very strong rally.
The weekly RSI (Relative Strength Index) broke above the descending resistance line and is sloping upward, supporting the potential for continued growth.
Therefore, the AVAX price has the potential to rise to the next resistance level at $15. This figure corresponds to a 26.84% increase from the current price.
A break above this zone would confirm that the long-term trend has turned bullish and the AVAX price could rise to the resistance zone at the yearly high of $22.
The daily chart supports the bullish outlook from the weekly timeframe. This is because the AVAX price confirmed the $10.7-$11 zone as support with a large bullish candlestick yesterday (blue arrow).
This action also invalidated the bearish divergence on the daily RSI (red line). This signals a strong upward momentum, with the bulls firmly in control of the market.
The most likely scenario suggests that the AVAX price will continue to rise to the next resistance level at $15. A break above this zone could lead to a sharp increase to $22.
This bullish outlook would be invalidated if the AVAX price breaks and closes below $10.7-$11 once again.
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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