fxstreet.com
- AVAX price shows the formation of equal lows at $23.48, indicating the start of a potential rally.
- A spike in buying pressure could see Avalanche rise by 26% to retest the $30.48 resistance level.
- A daily candlestick close below the recent swing low at $19.54 will invalidate the bullish thesis.
AVAX price looks ready to trigger a run-up as it creates stable launching pads. This development comes after Avalanche bulls have managed to produce a string of higher lows and higher highs since June 19.
AVAX price does not lack momentum
AVAX price has produced not one but four higher lows and three higher highs since June 19, which has pushed it up by 77% to where it currently trades - $23.97. Moreover, Avalanche seems to be preparing for more gains as it creates equal lows at $23.48.
A bounce off this level or the immediate support level at $22.53 could trigger an upswing. The first hurdle for bulls will be to produce a higher high above the July 20 swing high at $26.36. A strong surge in buying pressure will be able to breeze through this level.
Hence, investors can expect AVAX price to reach the $30.25 hurdle smoothly. This move would constitute a 26% upswing from $23.48 and 34% from $22.53 and is likely where the upside is capped for Avalanche.
AVAX/USDT 4-hour chart
On the other hand, if AVAX price breaks down the $22.53 support level, it will indicate a weakness among buyers and also suggest the possibility of a trend change favoring bears. The confirmation of such a development will occur after AVAX price produces a daily candlestick close below the July 27 swing low at $19.54.
This move will produce a lower low and invalidate the bullish thesis. In such a case, a failure to recover by buyers will potentially lead to a further crash to the $16.10 support level.