AVAX Price Prediction: Traders bet should be on Avalanche bulls triggering a 15% rally
- 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
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
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
