AVAX price steams on and ends downtrend with 30% upside potential
- Avalanche price action makes a perfect technical trade with bulls using it happily.
- AVAX price action is set to jump first above $100, targeting $111 by next week.
- Although the RSI has limited room to go, expect a gradual rise throughout the week.
Avalanche (AVAX) price action sees bulls breaking out of the chains of the downtrend with a solid rally that is following a textbook rule in trading. With AVAX piercing through crucial upside levels, these are then being tested for support, offering a window of opportunity for new bulls to join the rally, sparking a massive uptrend in the Relative Strength Index (RSI). Expect to see a further pickup in bullish prints as a target is set near term for $100 and further upwards $110, returning sound profits for investors.
AVAX price rising as bulls perform ‘classic long’ off the monthly pivot
Avalanche price action sees bulls at it again, performing a perfect technical long off the monthly pivot this morning. AVAX bulls already made a similar trade on March 18 with a bounce off the 55-day SImple Moving Average. What unfolded after that was a steep two-day rally that returned 20% in just 48 hours.
AVAX bulls are performing a similar operation this morning, with price action dipping first towards the monthly pivot at $83.08, offering an entry opportunity for bulls, who can put their stops safely behind the pivotal level of $81.00 and the 200-day SMA. To the upside, the stage is set for a rally to at least $100, with the monthly R1 just above, and a bit higher up a historic pivotal level at $110. From a risk-reward perspective, this should result in a 1-to-3.5 or a 1-to-6 risk-reward trade which is very well-balanced and profitable in both scenarios.
AVAX/USD daily chart
Although markets have learned to live with the current situation, and the EU looks to have run out of sanctions to impose, the situation could still turn dire and push cryptocurrencies to the downside. Putin has already used the word “nuclear” twice, and as the situation in Ukraine drags on, the possibility of nuclear weapons being used has risen linearly. If that were the case, expect a big fear-trade to roll through markets and see AVAX price action dip back towards the $68-levels hit in earlier months.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
