Altcoins
As Another Altcoin in a Wedge, AVAX Price Eyes 15% Upside
With a repeating trend in the crypto market, major altcoins in pullback form a bearish wedge pattern. However, while the end of the correction phase matches their timeline, the prices of AVAX and other altcoins are exhibiting a bullish reversal.
Following the wave of corrections, the recent surge in demand prepares a bullish turnaround to exceed the $30 mark. Will Avalanche Token’s Positive Trend Lead to a Bull Run and Breakout Rally in the Week Ahead? Learn more in our AVAX Price Prediction.
AVAX Reversal to Test Failed Media
With a higher price rejection last night, AVAX price fails to hold the $28.87 high. As a result, the Avalanche token drops to end the day at $27.56, a jump of 2.34%. Additionally, this marks the second consecutive positive day and creates a morning star pattern near the $26 base.
As mentioned earlier, AVAX price action is showing a descending wedge in the daily chart and the altcoin is supporting the basic trendline. Therefore, the bulls assert their dominance at the confluence of the trendline and the $26 base.
With a rise of 3.84%, the Avalanche token is trading at $27.65 with minimal intraday movement, lacking momentum to continue the trend. However, trading volume increased by 25% in the past 24 hours, reflecting a continued struggle for control of trends.
Technical indicators:
EMA: During the 27% decline in 14 days, the bearish influence on the AVAX price trend led to the 50D EMA moving below the 200D EMA. This marks a death cross in the daily chart, signaling a bear rush in play.
ROI: Unlike EMAs, the daily RSI line shows bullish divergence when it reverses from the oversold zone. With the rebound, the momentum indicator reveals an increase in buying pressure.
Will AVAX price reach the $50 mark?
As the altcoin builds on the basic trendline, the chances of AVAX price rising are strong. However, the prevailing bearish influence at higher price levels could cause the downtrend to continue.
Until then, the Avalanche token can test the overhead resistance near $32.