Jonathan Morgan
Independent Analyst
- AVAX price continues to lead the metaverse and gaming token sector of cryptocurrencies.
- The resistance level up ahead is the make or break zone for AVAX.
- Major drop up ahead if AVAX fails to breakout.
AVAX price has bucked much of the downtrend that other metaverse and gaming tokens have faced over the past few weeks. However, AVAX could increase its performance by breaching a critical resistance zone just ahead.
AVAX price to test a critical Fibonacci and psychological resistance zone
AVAX price is currently up against a tricky resistance area near $120. $120 contains a high volume node in the 2021 volume profile and the 61.8% Fibonacci retracement level. Just above that zone is the crucial psychological price level of $125. A close above those areas could yield a significant spike higher.
If AVAX price can close at or above $125, it confirms the breakout of two key resistance zones and completes one of the most sought-after entry strategies in the Ichimoku Kinko Hyo system: the Ideal Bullish Ichimoku Breakout. The Ideal Bullish Ichimoku Breakout entry occurs when the following conditions are met:
- The current close is above the Cloud (above Senkou Span A and Senkou Span B).
- The current close is above the Tenkan-Sen and Kijun-Sen.
- The Tenkan-Sen is above the Kijun-Sen.
- If the Tenkan-Sen is below the Kijun-Sen, then the Tenkan-Sen must be pointing up while the Kijun-Sen is flat or pointing down.
- Future Senkou Span A is above Future Senkou Span B.
- If Future Senkou Span A is below Future Senkou Span B, then Future Senkou Span A must be pointing up while Future Senkou Span B is flat or pointing down.
- Chikou Span is above the candlesticks and in open space.
AVAX/USDT Daily Ichimoku Chart
The most critical condition is number five – the Chikou Span above the candlesticks and open space. That final condition really provides the rally behind this entry strategy because it confirms no resistance for future price increases. The projected profit target is the 100% Fibonacci expansion at $170.
This bullish outlook is invalidated if AVAX price has a close below the Cloud, roughly the $100 value area.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Top 3 meme coins Dogecoin, Shiba Inu, Bonk: DOGE accumulation, SHIB update, BONK listing fuel gains
Most meme coins ranked in the top 10 by market capitalization, including Dogecoin (DOGE), Shiba Inu (SHIB), Bonk (BONK), have extended their gains from the past 7 days in the past 24 hours.
Is the crypto bull run back? Premium
Bitcoin’s ascent to $65,000 seems to have breathed hope into the choppy crypto markets. Some altcoins have shot up 10% to 20% due to BTC’s comeback. Investors wonder if this is the resumption of the crypto bull run.
AI tokens see explosive gains as Vitalik Buterin says GPT 4 passed the Turing test
Vitalik Buterin commented on whether OpenAI’s GPT 4 passed the Turing test, in an update on Farcaster. Buterin believes GPT 4 has passed the test, meaning it exhibits intelligent behaviour equivalent to or indistinguishable from humans.
XRP sustains above $0.51, eyes further gain as whales accumulate Ripple tokens
Ripple is being accumulated by large wallet investors as XRP holders await a court ruling in the Securities and Exchange Commission’s lawsuit against the firm. The altcoin’s accumulation by whales is a positive sign for XRPLedger’s native token.
Bitcoin: Why BTC is close to a bottom
Bitcoin (BTC) price efforts of a recovery this week have been countered by selling pressure during the onset of the American session. However, the downside potential appears to have been capped.