AVAX Forms Declining Wedge Pattern – Incoming Bullish Breakout?

Briefly –

• AVAX has struggled over the previous week.
• The crypto formed a declining wedge shape.
• 100 MA serves as the alt’s support.

Avalanche (AVAX) had registered healthy surges over the past weeks, increasing by more than 200%. With these actions, AVAX attained a new high after battling for many months. The crypto project has attracted investors as the asset targets to solve problems facing the cryptocurrency industry.

AVAX follows ETH steps. Avalanche aims to offer an efficient and scalable blockchain to facilitate DApps and DeFi creation. Such moves contributed to the coin’s recent upticks. Also, AVAX focuses on interoperability, targeting to bridge its services to the Ethereum blockchain.

According to AVAX’s price actions over last month, the token held a trend-line. However, the crypto has bounced off the line some few days ago and appears to target another possible bounce. The past two weeks have had AVAX forming a bullish dwindling wedge formation.

If bulls accumulate enough strength to break and hold this pattern, the AVAX price will face the resistance at $48.10. If the asset manages to keep away this level, the crypto will have to battle the $53 to $58 resistance to post new ATH.

Avalanche Price Analysis

As Avalanched nears the mid-term trend-line, investors need to consider a possible breakdown. In scenarios that bulls fail to initiate a bounce off the coin’s trend to overpower the wedge pattern, AVAX will plunge towards its massive support level. Before such actions emerge, bears will have to take Avalanched beneath the 100-MA. Keep in mind that this Moving Average has held the token for more than one month now. If bearishness dominate, market players will see the asset at the $30 to $35 levels soon.

The Stochastic RSI shows that the strength tried to move towards the overbought territory before facing rejections quickly. If the indicator maintains above the 50-level, AVAX may break the falling wedge formation. The MACD shows bullishness as it created a bottom-curving shape in the past weeks. Meanwhile, the token will move to its critical resistance level once the Moving Averages clear the zero (0) value.

Intraday Analysis

• Spot rate – $41.95
• Trend – neutral
• Volatility – high
• Support – $41.92
• Resistance – $48.10