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- AVAX/USD bounce from a low of $34.97 to a high of $41.45 in Wednesday’s intraday session
- The AVAX/BTC is trailing at 0.00070 with a gain of 8.84% at press time.
- AVAX is currently ranked #40 with a market dominance of 0.21%
AVAX/USD has been punctured inside a strong accumulation phase from the moment the price action projected retracement after establishing an ATH of $63. The price action of AVAX on the daily chart is restricted inside the Right-Angled Descending Broadening Formation. This megaphone-like structure suggests a breakout towards the upside 64% of the time. At present, the price of AVAX is sitting at a low of 38% from its ATH, and a break from the 2-month accumulation phase will lay the groundwork for an upswing of 42%.
On the downside, a bearish scenario might expose the 100 EMA(green) as temporary resistance. Although it may appear that the price action is prone towards a breakout, it could be the bear strategy to confuse the bulls leading to a fakeout scenario.
A rebound from the 0.5 FIB awaits on the 4-hour chart
The SuperTrend indicator on the 4-hour chart of AVAX/USD has flashed a sell signal on account of the price action facing confrontation by the bears. However, the bearish scenario will be invalided if the 36.23 (FIB 0.5) swoops in to retest as support. Having said that, a decisive close below FIB 0.5 would make AVAX vulnerable to the wrath of bears resulting in the price plunging further down.
The MACD on the 4-hour chart of AVAX has recently entertained a bullish crossover, as evidenced by the histogram expanding higher at press time.
The RSI, on the other hand, continues to accelerate downwards in the range of 52. Even though this level is not necessarily oversold, it depicts an excellent buying opportunity. A bullish cross on the weekly stochastic RSI has already transpired.
CONCLUSION: Although most technical indicators have dictated a strong buy signal for this token, a case of bearish engulfing was spotted in the 4-hour time frame. This might result in the price tanking for a minor pullback. Overall, the AVAX bull rally is all set to awaken, and speculators can expect strong moves in the upcoming trading sessions.
SUPPORT : $22.09, $36.23
RESISTANCE : $41, $63.65
