AVAX may rise up to 20% with new bullish pattern
CriptoFácil – With the growing uncertainty in the cryptocurrency market since last year, the price of (AVAX) is actively resonating between a horizontal resistance of $18 and a growing support trendline.
In technical analysis, this structure is called an ascending triangle pattern, which is one of the famous bullish continuation patterns. And the bullish pattern established in this cycle could lead AVAX to gains of up to 20% in the medium term. Here’s how to take advantage of this pattern now.
Historic
In the past three weeks, the AVAX price has recovered at least three times from the key levels of the triangle pattern. This recovery consists of the rising yellow line on the chart, which indicates higher than previous bottoms.
As per the established pattern, this indicates that traders are strictly responding to this pattern and should do the same with their potential target. That is, they should make the price of AVAX record even greater valuations.
At press time, the price of AVAX is worth around $17.87, according to data from CoinGecko. In this range, the price shows signs that it can break the next resistance, located at $18. But this task will not be easy, as there is a strong sell region above this level.
As the selling pressure persists at the aforementioned resistance, the AVAX price is likely to reverse downwards and thus prolong the ongoing consolidation phase. That is, stay lateralized before returning to try new highs. On the other hand, the break of this resistance could lead AVAX to surpass new levels as the buying force consolidates.
What to expect?
Anyway, in theory, the formation of a new higher peak in the asset price under the influence of a triangle pattern indicates a gradual growth in optimism. Dynamic support trendline narrows its distance between neckline resistance. This, in turn, allows the bulls to make a significant break, breaking resistance with strong volume.
Thus, a possible break of the resistance at the $18 level will release the buildup of bullish momentum and increase the AVAX price by 10% to reach $19.6. But if the trend continues, the price should go for the top of this move – the $21.60 region. This would represent an increase of almost 20% compared to the current price.
On the other hand, a less likely but possible break below the trend support line will invalidate the bullish thesis and could extend the prior beartrend. In this case, the first correction support is in the range of $16.45 and $15.30.
By CriptoFacil