AVAX Forms Falling Wedge Pattern, Is A Bullish Breakout Imminent for BINANCE:AVAXUSDT by CoinGape

-AVAX has fallen over -30% the last week
-Price has formed a falling wedge pattern
-100MA continues to act as support

Avalanche had an amazing run the last few weeks as prices surged over 200%. This price movement put AVAX at a new high for the first time in many months. Investors have been taking a bullish stance on AVAX as it aims to solve a major problem within the crypto space. The solution AVAX offers is a highly scalable & efficient blockchain that allows for DeFi & Dapps to be built upon it, similar to ETH. It also offers a bridge from the ETH blockchain to its own, which is a great solution for interoperability.

While looking at the last month of price action , we can see AVAX has held a trend line very well. AVAX just bounced off this trend line a couple days ago & seems to be heading for another potential bounce. Over the last two weeks, AVAX has formed a bullish falling wedge pattern (shown in blue). If bulls manage to break & hold this falling wedge , price will then have to battle it out at the minor resistance of $48.10. If bulls clear this, the major test is at the resistance zone from $53-$58. If AVAX can clear this zone, it will be off for a new high. 

Considering that Avalanche is nearing its mid term trend line , we have to be weary of a potential break below. If bulls fail to provide a bounce on this trend & AVAX breaks to the downside of its falling wedge pattern, we should expect a fall to the major support zone at minimum. Before this can occur, bears must pull AVAX below the 100MA which has held price up for over a month now. If all these marks get taken out, we should expect $30-$35 to come fairly soon. 

While looking at the Stochastic RSI , we can see strength just attempted to break into the overbought region but was quickly rejected. As long as strength can stay above the 50 value, AVAX is in position to go on to break its falling wedge pattern. The MACD is showing bullish signs as it has formed a bottom curving formation over the last few weeks. Once the MA’s clear the 0 value, AVAX should launch back to its major resistance zone . 

AVAX Intraday Analysis

Spot rate: $41.95

Trend: Neutral

Volatility: High

Support: $41.92

Resistance: $48.10

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