Is Avalanche price on its way back to $30?

Avalanche price has risen 25% over the weekend. The recent bearish candles should be viewed as a profit taking rather than a sell-off.

Avalanche price has more upside potential

Avalanche price currently trades at $22 as the bears are taking advantage of the influx of liquidity during the New York trading session. Since July 14, the bulls have established a wedging-like ascension with a newfound monthly high at $24.29. The wedge pattern does not come with  any bearish divergence on the Relative Strength Index (RSI); thus, it is best to stay with the trend. What many pattern traders may be reading as a leading diagonal could also be a classical 1-2-1-2 pattern before an explosive rally  targeting the $30 price zone occurs.

Avalanche price was able to break and retest above both the 8- and 21-day moving averages. When combined with the missing RSI divergence, AVAX has more upside potential. Avalanche price could end up retracing into the $19 price zone to grab liquidity before the next move up. Traders looking to enter the market should consider waiting for a retest of the $24 barrier before placing an entry. 

Invalidation of the bullish scenario is a breach below $16.42. If the bears can reconquer the invalidation point, they may be able to reroute south and target $11, resulting in a 50% decrease from the current Avalanche price.