A technical analysis from analyst Crypto Winkle suggests Avalanche (AVAX) shows strong bullish indicators on its USDT trading pair. The analysis, shared via X, outlines specific price targets while highlighting key technical metrics that support the token’s upward trajectory.
AVAX Demonstrates a Bullish Trend
Crypto Winkle’s analysis suggests that AVAX is experiencing a sustained upward trend, characterized by higher highs and higher lows. This indicates strong buyer interest.
The tweet also hints at a possible breakout from a prior resistance zone, which has propelled the price into a bullish trajectory.
At press time, AVAX was trading around $38.84, slightly below the 39.11 EMA level. This places the crypto at a critical point where sustained buying pressure could push prices higher. The key resistance zones identified are $42 and $51, likely representing previous highs or Fibonacci extension levels.
Technical Indicators Support Price Growth
The technical indicators provided by the tweet reinforce the bullish outlook. The MACD reading of 3.54 signals strong momentum, with potential for continued upward movement if the MACD histogram expands.
Additionally, the price trading near the 39.11 EMA suggests the trend is intact, as this moving average often acts as dynamic support during uptrends. Chart patterns and trendlines may further confirm the positive sentiment.
Patterns such as an ascending triangle or a bull flag could indicate a continuation of the upward move. Upward-sloping trendlines connecting recent lows also serve as critical support zones, helping traders identify favorable entry points.
Read also: Is It Too Late to Buy Cardano? ADA Price Prediction for 2025
Resistance Levels and Potential Risks
The identified targets of $42 and $51 mark important resistance levels. If AVAX successfully breaks above $42, it could pave the way for a move toward the next target at $51. However, a rejection at $42 could lead to a retracement, potentially testing support near the EMA or prior consolidation zones.
Traders should also monitor volume, which plays a key role in confirming breakouts. Declining volume during a pullback may signal consolidation, while increasing volume near resistance could indicate further bullish momentum.
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