Analytics

Can AVAX’s recent rally trigger a breakout to $30?

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Can AVAX’s recent rally trigger a breakout to $30?

  • AVAX price is trying to break out of the descending parallel channel.
  • Investors can expect Avalanche bulls to climb past the immediate hurdle and tag $30.
  • A four-hour candlestick close below $21.47 will invalidate the bullish thesis.

AVAX price consolidation intensifies as it approaches the end of a certain technical formation. As breakout possibilities increase, investors can expect Avalanche bulls to take control.

AVAX price edges closer to a volatile move

AVAX price has produced five distinctive lower highs and two lower lows since May 12. Connecting these swing points using trend lines reveals a descending parallel channel. While a breakout from this setup is generally bullish, Avalanche is taking its time.

On June 6, AVAX price edged closer to a breakout but failed to maintain its momentum. As a result, the altcoin slipped into a tighter consolidation below the parallel channel’s upper boundary. 

A decisive four-hour candlestick close above this trend line will indicate a breakout. While this move is bullish, investors need to wait for a secondary confirmation, which will arrive after a flip of the $27.89 resistance level into a support floor.

In such a case, AVAX price will likely make a run for the $31.75 hurdle, bringing the total gain to 30% from the current position at $24.24.

Can AVAX’s recent rally trigger a breakout to $30?

AVAX/USDT 4-hour chart

Regardless of the bullish setup formed by AVAX price, a sudden sell-off in Bitcoin’s price could see altcoins follow suit. In such a case, a four-hour candlestick close below $21.47 will flip a high-time-frame support level into a resistance barrier. 

This development will invalidate the bullish thesis and potentially open the path for a steep correction. If the selling pressure continues to build up, AVAX price could crash 31% and revisit the $14.75 foothold.



Source: ethereum.today

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