AVAX bulls kill off bearish breakout and relaunch Avalanche to new rally

Avalanche (AVAX) has been restoring its uptrend since the beginning of November after some sideways price action in October. In just a couple of days, AVAX price was able to gain 55% in value and hit $100 as a new all-time high. Since then, AVAX price has been fading slightly under some profit-taking, and the Relative Strength Index (RSI) is traded in overbought territory.

AVAX price sees buy-side support coming in a robust continuing uptrend

Avalanche price got hit with a correction that ran through the crypto space after US inflation numbers triggered doubts about current risk sentiment. First on the chopping block were cryptocurrencies that saw a quick and brief nosedive correction on Wednesday late in the European session. AVAX price is in the meantime back on the front foot with a strong rebound and back above the purple ascending trend line that is guiding the current short-term rally. 

AVAX price correction should not come as a surprise, whether or not it is linked to the inflation print. The RSI was in overbought territory, a correction was due to happen, and with that, traders got confirmation that the monthly R1 at $76.12 was there as support. With the quick reversal, AVAX bears received a warning that bulls won’t go quietly without a fight.

AVAX/USD daily chart

Expect this reversal of the correction to continue, and for AVAX price to face $100 quite soon. Unfortunately, the further upside potential is a bit capped by the monthly R3 resistance level at $102.25, so expect limitations on this stretch of the uptrend, although much depends on global market sentiment and tailwinds.