- AVAX price is traversing a descending parallel channel, suggesting a breakout soon.
- A retracement to $22 would be the best-case scenario that could propel Avalanche by 84%.
- A four-hour candlestick close below $21.47 will create a lower low and invalidate the bullish thesis.
AVAX price is consolidating in a downward sloping channel, hinting at a volatile breakout soon. However, if the bulls need a rest first, a minor retracement might develop, allowing buyers to scoop up Avalanche at a discount, before triggering the next leg higher.
Fundamentals improve dramatically
While technicals are hinting at a bullish outlook, Avalanche and the XRP Ledger blockchains are now connected via ApexBridge. This development will allow users to seamlessly transfer and swap assets between the connecting blockchains.
For this purpose, Catoshi, a cross-chain bridge is joining hands with Apex, a Node as a Service (NaaS) protocol built on the Avalanche blockchain. As a result, all DEXs and DeFi protocols will be able to use this service to connect to the XRPL via the API kits.
Ava Labs is thriving
Emin Gun Sirer, the founder of the Avalanche blockchain stated in a recent interview that despite the massive downturn in crypto markets, Ava Labs is “thriving.” He added that the number of,
people in the company is around 180… and we're growing. I think by the end of the year, we should be 250 at least. We've been in this hyper-growth phase for some time now, we're doing really well.
He also added that he is not particularly worried about the short-term take on prices due to present uncertainty around the Federal Reserve and the steps they’re taking to tackle inflation. While AVAX price is down 75% from its all-time high, so are many other Layer 1 tokens. Regardless, the technicals are showing two outlooks that present a massive rally is on the horizon
AVAX price read to make its move
AVAX price has set up four distinctive lower highs and two lower lows since May 12. Connecting these swing points using trend lines reveals a descending parallel channel. This technical formation leans toward a bullish breakout and confirmation is obtained after a decisive flip of the upper trend line into a support level.
Considering the state of Bitcoin price and the need for a pullback, AVAX price might also do the same. Investors need to be prepared for a retracement that pushes the altcoin down to the immediate support floor at $22.43.
A retest of this level will likely be met with buyers scooping the altcoin up at a discounted price, which will catalyze the breakout and an upswing. The resulting rally could propel AVAX price up by 70% to the first hurdle at $38.48 but could also extend up to $41.17.
In total, the move from $22.43 to $41.17 would almost double the price of Avalanche tokens, making it an amazing opportunity for patient investors.
AVAX/USDT 4-hour chart
While things are looking up for altcoins, a sudden downturn in Bitcoin price could ruin the bullish setups. The same holds true for Avalanche bulls as well; a four-hour candlestick close below $21.47 will create a lower low and invalidate the bullish thesis.
This development could see AVAX price crash to $14.75, another high time frame support level.
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.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.