Avalanche (AVAX) price is making impressive gains in the past two days. The current price action is preparing for another rise. AVAX forms the bullish setup to mark a 22% increase towards $109.28. However, there could be a small retracement that could validate the uptick.
Avalanche (AVAX) price extends profit for the second consecutive session. AVAX gains nearly 80% of its January lows of $53.0. A decisive break below the 50-day Simple Moving Average will make the bulls cautious.
At the time of writing, AVAX/USD is trading at $94.72, up 1.74% for the day. The 24-hour trading volume stands at $1,498,354,078 with over 20% gain.
AVAX in the elevator
On the daily chart, the price of Avalanche (AVAX) traded in the downward channel after reaching an all-time high of $147.50. The price falls close to 63% of the said level before testing the swing lows at $53.0 in January.
Source: Trade View
The renewed buying pressure on February 14 is near the lower trendline of the rising wedge formation, which is a bearish reversal pattern. But the price cut below the 50-day Simple Moving Average (SMA) and pulled AVAX back to the stated level. However, this laid the foundation for the continuation of the prevailing uptrend.
The first resistance line can be found at the psychological level of $100, this also coincides with the breaking of the bearish debilitating line. AVAX price could further challenge the January 4 highs at $109.28.
On the downside, the shift in bullish sentiment could force investors to liquidate their positions first towards the 50-day moving average at $86.28. Furthermore, AVAX could fall further to the February 3 lows at $65.03.
RSI: The Daily Relative Strength Index (RSI) is holding above 62 with a bullish outlook.
MACD: The moving average convergence divergence (MACD) reads above the midline with an upward bias.
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was published first on https://coingape.com/markets/100946-2/