• AVAX price has breached an inverse head-and-shoulders setup, hinting at a 13% upswing.
  • The recent developments suggest that this move could propel Avalanche's market value to $16.
  • Invalidation of the bullish outlook will occur on the breakdown of the $12.77 support level.

AVAX price has broken out of a critical hurdle and pattern, signaling the start of a quick run-up. However, bulls face another blockade that needs to be overcome to trigger an extended rally.

AVAX price ready to squeeze more gains

AVAX price action between November 11 and December 2 created an inverse head-and-shoulder setup. This technical formation forecasts a 13% upswing to $14.83, obtained by measuring the distance between the head’s lowest point and the neckline and adding it to the breakout point at $13.

Since AVAX price breached this set up on December 2, it has attempted to continue its ascent to $14.83 but has failed. This failure can be attributed to a lack of momentum as it faces the $13.91 hurdle. Overcoming this barrier will allow AVAX price to reach not only its target but also eye for a retest of the $15.94 resistance level.

AVAX/USDT 4-hour chart

AVAX/USDT 4-hour chart

While the bullish outlook makes logical sense, investors need to consider the possibility of AVAX price lacking bullish momentum. Rejection at $13.931 could be the first sign of weakness, but a breakdown of the $12.77 level will invalidate the bullish thesis.

Due to the creation of a lower low, bears are likely to step up, triggering AVAX price to slide lower and retest the $11.88 support level.

This video explains how Bitcoin price moves could affect AVAX price

 

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