• AVAX price shows the formation of equal lows at $23.48, indicating the start of a potential rally. 
  • A spike in buying pressure could see Avalanche rise by 26% to retest the $30.48 resistance level.
  • A daily candlestick close below the recent swing low at $19.54 will invalidate the bullish thesis.

AVAX price looks ready to trigger a run-up as it creates stable launching pads. This development comes after Avalanche bulls have managed to produce a string of higher lows and higher highs since June 19. 

AVAX price does not lack momentum

AVAX price has produced not one but four higher lows and three higher highs since June 19, which has pushed it up by 77% to where it currently trades - $23.97. Moreover, Avalanche seems to be preparing for more gains as it creates equal lows at $23.48.

A bounce off this level or the immediate support level at $22.53 could trigger an upswing. The first hurdle for bulls will be to produce a higher high above the July 20 swing high at $26.36. A strong surge in buying pressure will be able to breeze through this level.

Hence, investors can expect AVAX price to reach the $30.25 hurdle smoothly. This move would constitute a 26% upswing from $23.48 and 34% from $22.53 and is likely where the upside is capped for Avalanche.

AVAX/USDT 4-hour chart

AVAX/USDT 4-hour chart

On the other hand, if AVAX price breaks down the $22.53 support level, it will indicate a weakness among buyers and also suggest the possibility of a trend change favoring bears. The confirmation of such a development will occur after AVAX price produces a daily candlestick close below the July 27 swing low at $19.54.

This move will produce a lower low and invalidate the bullish thesis. In such a case, a failure to recover by buyers will potentially lead to a further crash to the $16.10 support level.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: How to trap a hungry bear

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: How to trap a hungry bear

The crypto market moves higher. Placing a countertrend short is still ill-advised. Higher targets remain possible for all assets. Bitcoin price tests the lower half of an ascending channel for the third time. Ethereum price continues displaying bearish divergence but underline market strength remains. Ripple price in a make-or-break situation.

More Cryptocurrencies News

How to prepare for a ballistic XRP price move

How to prepare for a ballistic XRP price move

XRP flips bullish after tagging its primary support at $0.3600. The buyer congestion in this zone disrupted a potential drop to $0.3179. A glance at the technical outlook reveals that XRP price may close the day above $0.3800, with $0.4200 coming within reach.

More Ripple News

This MATIC price prediction is so far the best trade of 2022

This MATIC price prediction is so far the best trade of 2022

MATIC recent upswing is one of the best forecasted trade setups made this year. Here’s a full recap of what just took place. Polygon rallied 125% since July 1; FXStreet analysts were able to find an entry capturing 68% of the rally for an 85% increase in profit.

More Polygon News

Shiba Inu price ready to explode after Ethereum whale scoops up 312 billion SHIB

Shiba Inu price ready to explode after Ethereum whale scoops up 312 billion SHIB

Shiba Inu leaves competitor Dogecoin and layer-1 altcoins behind as it prepares to explode. Large wallet investors on the Ethereum network scooped up Shiba Inu, accumulating over 312 billion SHIB tokens. 

More Shiba Inu News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP