Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinionThe upside breakout from the bullish wedge has a target between $15.5 and $16.0Since the crypto-crash in early November, Avalanche has posted unsuccessful price recoveries. The rallies only pushed AVAX lower and lower, breaking through several supports along the way.However, at press time, AVAX seemed determined to regain lost ground.
The price movement of AVAX after the crash formed another bullish wedge chart pattern . If it follows its previous trend, the bullish breakout could set AVAX up for another price rally in the coming days or weeks. The Relative Strength Index seemed to be retreating from the oversold territory – A sign of selling pressure. A possible Moving Averages Convergence Divergence crossover also revealed that buyers have been inching closer to control.
An intraday candlestick close below the press time support at $11.46 would invalidate the above bullish bias. In this case, AVAX could extend its decline to new supports at $9.3 or $8.5., AVAX’s development activity steadily increased from mid-October. The price also appreciated significantly, as shown in the chart above and the rising channel on the price chart.