- AVAX price shows that it is retracing to the 8-day EMA at $19.08 serving as a support level.
- Investors can expect a bounce off the said foothold to trigger a 21% upswing to the 34-day EMA at $23.35.
- A daily candlestick close below the $18.26 barrier will invalidate the bullish thesis for Avalanche.
AVAX price has been on a roll since it bottomed on June 19. Since then, the altcoin has managed to provide traders with massive gains. The recent retracement suggests that Avalanche bulls are planning their next leg-up.
AVAX price finds a launching platform
AVAX price rallied a whopping 57% between June 19 and June 26, This impressive run-up was a recovery after a 90% crash since its all-time high at $146.75. Regardless, the bounce seems to be going up pretty well.
Investors need to be patient for AVAX price to retrace to the 8-day Exponential Moving Average (EMA) at $19.11. While buyers are likely to step in at this point to purchase the discounted Avalanche tokens, in some cases, the pullback could extend to $18.26.
Despite where buyers step in, $19.11 or $18.26, traders can expect this pullback to be scooped up by bargain hunters. As a result, AVAX price will likely try to breach through the high-time-frame resistance barrier at $21.47 and make a run for the next hurdle at $23.35 aka the 34-day EMA.
This move, in total, would constitute 21% from $19.11 or 27% from $18.26, and are likely where the trend will face exhaustion for Avalanche.
AVAX/USDT 1-day chart
While things are looking up for AVAX price, a daily candlestick close below the $18.26 barrier will invalidate the bullish thesis for Avalanche. This breakdown will invalidate the recent optimistic recovery and flip the $18.26 support level into a resistance barrier.
Such a development could further see AVAX price retrace 13% and retest the June 23 swing low at $16.00.
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