AVAX Technical Chart Hints V-Shaped Price Recovery
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The overall trend for the AVAX coin is still bullish, where the recent correction phase in its price has found good support from the $78 mark. Moreover, this impressive price recovery in the last few days could be triggered by a flood of positive news like Circle launching its stable coin USD Coin (USDC) on Avalanche. In addition, A report by Nasdaq mentioned Bank of America analysts calling Avalanche a viable alternative to the leading smart contract platform Ethereum.
Key technical points:
- The AVAX coin price reclaims the 50-day EMA
- The intraday trading volume in the AVAX coin is $2.4 Billion, indicating a 21.2% gain.
Source- chart by Tradingview
The last time when we covered an article on AVAX/USD, the correction phase brought a 30% discount on this coin, as the price plummeted to 0.5 Fibonacci retracement level. The coin hovered above this level for almost two weeks before giving a proper signal for a bullish reversal.
On December 15, the AVAX coin tried to breach its nearest resistance around $100-$97.8, and after a short retest, the coin continued its rally aiming at the All-time high of $146.
The crucial EMAs (20, 50, 100, and 200) have recovered their bullish alignment in the daily chart, indicating a strong uptrend. The Relative Strength Index (60) line has jumped above the neutral zone, indicating a bullish sentiment in price.
AVAX/USD 4hr time frame chart
Source- chart by Tradingview
So far, the AVAX coin has soared 48% from its bottom support of $78. Now it is steadily charging towards its next resistance of $127. If the price managed to reclaim this overhead resistance, the coin would soon challenge ATH resistance of $145 for a bullish breakout.
On the contrary, even if the price rejects the above resistance, the crypto traders can maintain a bullish sentiment until the price sustains above the $100 mark.
The traditional pivot shows remarkable confluence with the AVAX/USD chart level. According to these pivot levels, these traders can expect the nearest resistance at $117, followed by $127. As for the opposite end, the support levels are $97.7 and $87.3.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com
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