AVAX price prepares for major upswing as Avalanche bulls target $106 next

AVAX price is preparing for a substantial climb as a bullish chart pattern has emerged. Avalanche bulls could be headed for a 20% ascent toward $106 if the token manages to slice above the hurdles ahead.

AVAX price gears up for 20% ascent

AVAX price has formed an ascending parallel channel on the 12-hour chart, indicating a bullish forecast for the token. Avalanche could target the upper boundary of the governing technical pattern next at $106, coinciding with the 127.2% Fibonacci extension level.

The first line of resistance will emerge at the middle boundary of the prevailing chart pattern at $89. An additional headwind may appear at the 200 twelve-hour Simple Moving Average (SMA) at $94, coinciding with the resistance line given by the Momentum Reversal Indicator (MRI).

AVAX price may face another challenge at the January 13 high at $97 before the bulls attempt to reach the aforementioned optimistic target at $106. 

AVAX/USDT 12-hour chart

However, if selling pressure increases, AVAX price will discover immediate support at the 78.6% Fibonacci retracement level at $85, intersecting with the 21 twelve-hour SMA and the 100 twelve-hour SMA. 

If bearish sentiment continues to increase, AVAX price may fall further toward the lower boundary of the governing technical pattern at $78, coinciding with the 61.8% Fibonacci retracement level.

An additional spike in sell orders may see AVAX price slice below the downside trend line of the prevailing chart pattern to invalidate the bullish outlook.

Avalanche could tumble further toward the 50 twelve-hour SMA at $73, where the 50% retracement level is also located, before AVAX price drops toward the support line given by the MRI at $68, coinciding with the 38.2% Fibonacci retracement level.