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AVAX Technical Analysis: Post-Retest Reversal Boosts Bullish Hope

Analytics

cryptoknowmics.com 21 July 2022 20:04, UTC
  
Reading time: ~2 m

The Avalanche(AVAX) price action shows a post-retest reversal attempt from the $22 support level to cross above the $28 mark.   Key technical points: 

  • The AVAX prices dropped by 6.90% in the last 24 hours.
  • The price action shows a lower price rejection in the daily candle from $22, teasing a bullish reversal.
  • The 24-hour trading volume of Avalanche is $922 Million, indicating a drop of 19%.

Past Performance of AVAX

As mentioned in our previous article, the Avalanche(AVAX) prices broke the resistance trendline’s influence and beat the 50-day average price. The bullish reversal from $16, accounting for a 50% jump last week, is responsible for breaking the downtrend. However, the price trend took a turnaround from $24.5 to retesting the $22 mark. TradingView Chart Source- Tradingview

AVAX Technical Analysis 

The daily candle in the AVAX price chart shows a long-tail formation from $22, reflecting a post-retest bullish reversal. Hence, if the buying pressure sustains, the breakout rally can reach the overhead resistance at the $28 mark. Tomorrow is the if the market price sustains above the 50-day SMA, a jump to the 100-day SMA seems inevitable. The RSI indicator maintains a bullish view for the upcoming trend as the RSI slope sustains in the overbought territory. Additionally, the 14-day average line crosses above the halfway line indicating an increase in underlying bullishness. Furthermore, the MACD indicator displays a gradual growth in buying pressure as the fast and slow lines cross into positive territory. In a nutshell, the AVAX technical analysis forecasts a high momentum bullish rally crossing above the $28 mark.

Upcoming Trend

Considering the buying pressure sustains the Avalanche(AVAX) prices above $22, traders can expect an uptrend continuation to the $28 mark. However, a dip under the $22 mark will drop prices to the psychological mark of $20. Resistance Levels: $25 and $28 Support Levels: $22 and $20


   Source
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