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The AVAX price action shows a bullish reversal from the 50-day SMA with a morning star pattern, attempting to break above the $25 mark.
Key Technical Points:
- The AVAX prices jumped by 6.67% in the last 24 hours.
- The bullish reversal from the 50-day SMA prepares to exceed the $25 mark.
- The 24-hour trading volume of Avalanche is $1.058 billion, indicating a hike of 23%.
Past Performance of AVAX
As teased in our previous article, the AVAX prices take a bullish reversal from $20 near the 50-day SMA instead of the $22 support level. The reversal results in the Morning Star pattern forming at the 50-day SMA and propels the market price higher by 20% in the last three days. However, the bull run struggles to exceed the $25 mark as supply pressure increases, evident by the long wick and small body candle formations. Source – Tradingview
AVAX Technical Analysis
The AVAX price chart displays a post-retest reversal from the broken resistance trendline, which increases the likelihood of an uptrend continuation. However, traders will find a suitable entry point once the market value exceeds the $25 mark. Taking bullish support at the 50day SMA results in a lateral shift in the average line, ending the downtrend. The bull run in the last three days results in an upside reversal in the daily RSI slope from the halfway line. However, the reversal rally struggles to exceed the 14-day SMA as it takes a sideways shift. Furthermore, the MACD indicator showcases the fast and slow lines avoiding a bearish crossover with the help of resurfacing bullish histograms. In a nutshell, the AVAX technical analysis suggests that traders wait for the price action confirmation as the $25 mark remains a crucial bearish milestone.
If the AVAX prices beat the resistance at $25, the bull run will face another bearish opposition at the $28.50 horizontal level. However, if the buying pressure continues throughout the week, the bull run might beat the 100-day SMA at $30 to challenge the $36 resistance level. Conversely, a bearish reversal from the $25 mark will result in another dip to the 50day SMA close to the $20 mark. Resistance Levels: $25 and $28.5 Support Levels: $22 and $20