Avalanche’s AVAX price could make a run towards $40, here’s how
- AVAX price has risen 35% since the June 11 lows at $13.71.
- Avalanche price shows bullish interest on the volume indicator.
- Invalidation of the downtrend is a breach below 13.71.
Avalanche’s AVAX price could start moving violently towards $30. Traders should keep their eyes on the digital gaming token to partake in a short-term bull-run.
AVAX price looks ready for a counter-trend move
Avalanche’s AVAX price shows newfound interest as the bulls have managed to rally 35% since the June 11 lows at $13.71. Bears anticipating more sell-offs could find themselves on the wrong side of the trade as the crypto market is showing signs of a reversal in the future.
AVAX price currently trades at $19.44 as profit-taking at the psychological $20 level is expected. If the rally is genuine, the smart money could begin sending the Avalanche price towards $30 to breach previous resistant zones. The Relative Strength Index provides a bullish divergence between wave three and the short-lived wave five on the nine-hour chart. This subtle piece of evidence could be the only justification for a bullish surge in retrospect.
AVAX/USDT 9-Hour Chart
Invalidation of the bullish thesis is a breach below the June 11 low at $13.71, providing a 3-1 risk-to-reward ratio. If the bears manage to breach $13.71, expect a fall to $10, resulting in a 45% decrease from the current AVAX price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
