Avalanche price eyes a quick run to $30.00 after bulls swooped in at $21.00
|- Avalanche price next move to $30.00 will be unavoidable if bulls escape resistance at $24.00.
- Short-term price analysis shows that a Bollinger band breakout is around the corner.
- Positive investor sentiment must catch up with AVAX's rebound for a sustainable uptrend.
Avalanche price is gearing up for its return to $30.00 one week after plunging to $21.00. The smart contracts token must carefully navigate through the ongoing consolidation to guarantee a positive outcome. Investor sentiment is bound to flip positive if AVAX breaks above resistance highlighted at $24.00 – creating enough tail force to propel the price to $30.00.
Avalanche price lays the groundwork for the move to $30.00
Avalanche price eased into consolidation immediately after last week's sell-offs cooled at $21.00. Its initial bullish move came close to tagging the seller congestion at $24.00, but overhead pressure overwhelmed the token, compelling AVAX to retest its primary support ($21.00).
The four-hour chart reveals squeezing Bollinger bands – a prospective bullish signal. Traders should remember that the tighter the constriction, the bigger the breakout. Further analysis of this technical indicator displays a positive outlook because prices tend to bounce off the lower boundary level.
AVAX/USD four-hour chart
Michaël van de Poppe, a renowned cryptocurrency analyst and trader, explained to his followers on Twitter that Avalanche price would activate its uptrend if it reclaims the 50-day Simple Moving Average (SMA). Poppe illuminated that AVAX and many other altcoins slipped below the 50-day SMA during last week's market crash.
"Due to last week's correction, many altcoins have been dropping beneath their 50-day SMA. Reclaiming that would trigger some serious activation, the same goes for AVAX."
AVAX/USD price chart
Despite the looming breakout to $30.00, investors are yet to warm up to AVAX. According to Santiment's Positive Weighted Sentiment, Avalanche price may extend the downtrend to retest support at $21.00 before regaining momentum to take on the resistance at $24.00.
Positive Weighted Sentiment
Choppy markets are expected across all spheres of the global economy, including the cryptocurrency market. Jerome Powell, the Fed's chair, warned of more pain in the coming months during the annual Jackson Hole Symposium on Friday.
Although Powell had no clear answers for investors, the next decision (on August's interest rate) would entirely depend on market data. He reckoned that punitive measures might need to continue for a while.
For this reason, traders must practice restraint and book early profits at $24.00 and $26.00, respectively. In case of declines, new entries can be made at $21.00 and, if push comes to shove, at the $19.50 and $16.50 price levels.
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