Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice

Avalanche witnessed a reversal pattern, can it sustain a breakout rally?
The crypto’s development activity and funding rates revealed an advantage to the buyers.

While trendline resistance (white, dashed) has eschewed buying efforts for the past seven months, the recent reversal Avalanche [AVAX] under the south-facing EMA ribbons.

Here are AMBCryptos price forecast for Avalanche [AVAX] for 2023-24

Finding newer lows, the alt sought to test its long-term support level in the $14.8 region. The bulls could now try to dive in to cause a convincing pattern break in the sessions to come.

As of going to press, AVAX was trading at $15.3, down nearly 1.51% in the past 24 hours.

AVAX formed a reversal pattern near its long-term support

Source: TradingView, AVAX/USDT

As the seven-month trendline resistance countered recent buying pressures, AVAX marked an expected decline, one that led to a loss of over 49% in the past two months.

Meanwhile, the EMA ribbons undertook a bearish flip and looked south to discover the underlying selling advantage. After a relatively high volatile move over the past two days, AVAX has gone into a compression over the past few weeks. Meanwhile, it outlined a falling wedge structure on its daily chart.

A close above the trendline resistance and the 20 EMA would confirm the chances of a possible breakout rally. In these circumstances, buyers could test the $18.3 – $18.5 resistance.

On the other hand, any drop below the immediate support can help the sellers increase their lead. In this case, the first major support level would be in the $12.6 region.

The Relative Strength Index (RSI) bounced back from oversold territory to confirm the bullish comeback story. A sustained uptick in press time position could help the bulls achieve a near-term recovery in the coming sessions.

Improved development activities in addition to funding rates

Source: Santiment

Until May 2022, AVAX showed relatively high sensitivity with its development activity. Over the past five months, activity continued to grow, but price action succumbed to broader market liquidations. Should broader sentiment improve, the price would try to regain its movement north to follow the stat, as it did before.

To top it off, funding rates on Binance showed a consistent increase over the past month. As a result, they turned positive, highlighting an underlying sentiment favorable to buyers. But the price action has yet to reflect this sentiment.

Finally, traders should keep in mind: Bitcoins movement and its effects on the wider market to make a profitable move.



This post Measuring whether AVAX bulls can rally from this support level

was published first on https://ambcrypto.com/gauging-if-avax-bulls-can-pull-off-a-rally-from-this-support-level/

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