AVAX Price Prediction: Avalanche prepares for 35% gains
|- AVAX price has been on a 26% descent since October 3.
- Avalanche is likely to reverse now and establish an uptrend.
- A breakdown of the $42 support level will invalidate the bullish thesis.
AVAX price more than doubled between September 8 and September 23, but since forming its local top on September 23, it has been on a downtrend. While Avalanche has had its fair share of corrections, it seems to have bottomed out and is preparing to head higher.
AVAX price sets the stage for bullish move
AVAX price was traversing an ascending parallel channel from September 8, but broke out on October 3. Since then, Avalanche market value dropped roughly 26% to where it currently trades, $50.58. Going forward, investors can expect the buyers to scoop up AVAX and a discount, pushing its price higher. Adding credence to this is the retest of $50.58, which opens up the possibility of a double-bottom formation that forecasts a reversal of the downtrend.
Moreover, market participants can expect AVAX price to rise at least 15% to $65, where it will face a stiff resistance level. Clearing this barrier will open the path for another 15% move to $75.53. In total, this ascent would constitute a 35% climb from its current position.
In some cases, AVAX price could make a run at the buy stop liquidity resting above the $79.68 swing high.
AVAX/USDT 4-hour chart
On the other hand, if AVAX price fails to reverse around $50.58, it will reveal that the sellers are not done yet. Such a move might knock Avalanche down to the immediate support floor at $42.40.
However, a breakdown of this level will invalidate the bullish thesis and could trigger additional selling pressure, pushing AVAX price to $34.52 or lower.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.