AVAX Price Forecast Positive in the Short-Term Despite Market Disarray

Published on:



The Avalanche (AVAX) price is increasing after confirming a short-term bullish pattern. The long-term trend remains to be determined.

The AVAX price has decreased underneath a descending resistance line since reaching a maximum price of $30.89 on Aug. 8. On Oct. 13, it bounced above the $15 horizontal support area (green icon). The area had been in place since June 13. 

However, after another rejection from the line on Nov. 5 (red circle), AVAX began another downward movement. It broke from the $15 area on Nov. 9 and validated it as resistance the next day (red icon). So, the AVAX price prediction cannot be considered bullish until the price reclaims this area, which now coincides with the descending resistance line.

Despite the bearish price action, the RSI’s bullish divergence trend line (green line) remains intact. But, the indicator is below 50, which is considered a sign of a bearish trend.

AVAX Price Prediction: Double Bottom Leads to Breakout

The price chart from the four-hour chart is bullish. 

While decreasing below a descending resistance line, the Avalanche price created a double bottom pattern between Nov. 9 and 14. The double bottom is considered a bullish pattern. Moreover, it was combined with bullish divergence in the RSI (green line).

After bouncing over the past 24 hours, AVAX broke out from the resistance line. If the upward movement continues, the closest resistance area would be between $15.30 and $16.30, created by the 0.382-0.5 Fib retracement resistance levels. 

If the entire movement is an A-B-C structure, a high of $16.30 will give waves A:C a 1:1 ratio, giving more confluence to the latter target. Therefore, the short-term Avalanche price prediction is bullish.

What Is the Long-Term Trend?

The long-term trend still shows bullish signs. 

Firstly, the AVAX price is still trading inside the long-term $14 horizontal support area. Secondly, the weekly RSI has broken out from a resistance line (black) and generated bullish divergence (green line). These signs usually precede upward movements. If one occurs, the closest resistance would be at $30.

However, the bearish readings from the daily time frame cast some doubt in this possibility. So, if a breakdown happens instead, the Avalanche future price could fall to $4.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Disclaimer: BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.



Source link

Related