AVAX price brews the perfect storm for a 25% bounce

AVAX price is attempting to break its 40-day downward-facing consolidation.
A bounce off the $14.75 support level is likely to trigger a run-up to the $21.47 hurdle.
A daily candlestick close below $14.75 will create a lower low and invalidate the bullish thesis for Avalanche.

AVAX price looks ready for a reversal as it consolidates above a stable support level. This upswing seems to have the backing of an indicator, adding more credence to the possibility of an upswing.

AVAX price to trigger a run-up

AVAX price has seen a string of five lower lows since May 12, denoting the constant sell pressure in the crypto ecosystem. This downtrend was a common theme across the cryptoverse as massive liquidation events took place among lending platforms and companies.

Regardless, AVAX price seems to be making the best out of the worst situation. The Relative Strength Index (RSI) indicator has formed higher lows since May 12, suggesting a bullish divergence setup.

This technical formation forecasts a bullish move for the underlying asset. Therefore, investors can expect AVAX price to rally 28% and tag the immediate resistance barrier at $21.47. This is likely where the upside is capped for the altcoin.

In case of a flip of this blockade into a support level, the chance of extending the rally to $27.89 increases. This move, in total, would constitute a 67% ascent from the current price.

AVAX/USDT 1-day chart

While things are looking up for AVAX price, a failure to muster the momentum to rally could indicate weakness among buyers. In such a case, if AVAX price produces a daily candlestick close below the $14.75 support level, it will create a lower low and invalidate the bullish thesis for Avalanche.

This development could see AVAX price slide towards the next support floor at $10.70.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.