With a repeating pattern in the crypto market, the top altcoins under the pullback phase form a bearish wedge pattern. However, as the end of correction phase match their timings, AVAX and other altcoins price present a bullish reversal.
Following the correction spree, the recent surge in demand prepares a bullish turnaround to surpass the $30 mark. Will the positive trend in the Avalanche token result in a bull run and a breakout rally in the coming week? Find out more in our AVAX Price Prediction.
AVAX Reversal To Test Failed Supports
With a higher price rejection last night, the AVAX price fails to sustain the high at $28.87. As a result, the Avalanche token slides down to end the day at $27.56, accounting for a 2.34% jump. Further, this marks the second consecutive positive day and creates a morning star pattern near the $26 base.
As mentioned before, the AVAX price action shows a falling wedge in the daily chart and the altcoin takes support from the base trendline. Hence, the bulls are asserting dominance at the confluence of trendline and $26 base.
With a 3.84% rise, the Avalanche token trades at $27.65 with a minimal intraday move, lacking momentum for trend continuation. However, the trading volume has increased by 25% over the last 24 hours, reflecting an ongoing brawl for trend control.
Technical indicators:
EMA: During the 27% drop in 14 days, the bearish influence over the AVAX price trend led to the 50D EMA crossing under 200D EMA. This marks a death cross in the daily chart, singaling a bear rush at play.
RSI: Unlike the EMAs, the daily RSI line shows a bullish divergence as it reverses from the oversold zone. With the bounce back, the momentum indicator reveals an increment in buying pressure.
Will AVAX Price Achieve $50 Milestone?
As the altcoin takes support from the base trendline, the upcycle chances are strong in the AVAX price. However, the dominant bearish influence at higher price levels could result in a downtrend continuation.
Until then, the Avalanche token can test the overhead resistance near $32.
This article was originally published by a coinpedia.org . Read the Original article here. .