Avalanche (AVAX) price makes impressive gains in the previous two days. The current price action is preparing for another leg up. AVAX forms the bullish setup to mark an ascent of 22% toward $109.28. However, there can be minor retracement that can validate the upswing.
- Avalanche (AVAX) price extends gains for the second straight session.
- AVAX gains nearly 80% from the January lows of $53.0.
- A decisive break below the 50-day Simple Moving Average will throw caution for the bulls.
As of writing, AVAX/USD is trading at $94.72, up 1.74% for the day. The 24-hour trading volume stands at $1,498,354,078 with more than 20% gains.
AVAX on the upside run
On the daily chart, Avalanche’s (AVAX) price has been trading in the downside channel after making all-time highs of $147.50. The price depreciates nearly 63% from the mentioned level before testing the swing lows in January at $53.0.
The renewed buying pressure on February 14 is near the lower trend line of the ‘rising wedge formation’, which is a bearish reversal pattern. But the price sliced below the 50-day Simple Moving Average (SMA) retracting AVAX toward the mentioned level. However, this set the base for the continuation of the prevailing uptrend.
The first line of resistance could be found at the psychological $100 level, this also coincides with the breaching of the bearish slopping line. AVAX price might further challenge the highs of Jan 4 at $109.28.
On the other hand, the shift in the bullish sentiment could force the investors to liquidate their positions first toward the 50-day moving average at $86.28. Further, AVAX could further tumble to the lows of February 3 at $65.03.
Technical Indicators:
RSI: The Daily Relative Strength Index (RSI) holds above 62 with a bullish outlook.
MACD: The Moving Average Convergence Divergence (MACD) reads above the midline with an upward bias.
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