AVAX price correction prompts attention below $30, with a potential double bottom formation indicating a reversal. A breakout may propel prices towards $50 or higher.
Avalanche’s AVAX has experienced a price correction, delaying its goal of reaching $100 and prompting concern about avoiding a drop below $30. With a 50% decline in the downward trend, the altcoin seems to be forming a falling channel pattern on the daily chart. Buyers are working to keep the price above $30, while there’s a growing feeling that the market sentiment could shift from bearish to bullish. Amidst rising expectations for an altcoin season, AVAX’s potential to reach $100 by year-end is becoming more promising.
AVAX Price Analysis: Signs of Bullish Reversal
Despite a notable pullback, AVAX has found support around $30, suggesting a potential double bottom formation—a significant bullish signal. Currently, the altcoin’s price is indicating signs of breaking the general trend line at $34.59, potentially leading to a breakout from the falling channel.
As AVAX exits the falling channel, there’s anticipation for increased upward momentum and a strong upward movement in the popular altcoin.
Technical indicators further support the potential for a bullish reversal. The MACD and signal line, positioned above the zero line, suggest a possible recovery with bullish signals. Moreover, the intertwining of these lines indicates a bullish trend. Additionally, the RSI line on the daily timeframe displays a bullish breakout on the chart, enhancing the likelihood of a bullish trend.
AVAX Potential Breakout: Opportunity for New Investors
As bullish sentiment grows, AVAX presents an enticing entry point for new investors. Momentum indicators align with this bullish scenario, hinting at the possibility of a breakout from the channel formation.
Should a breakout occur, the emerging bullish trend on the AVAX chart could propel the price towards $50 or the 50% trend-based Fibonacci level.
However, in a worst-case scenario, if the price fails to hold above $30, it may experience a significant drop. In such a case, a potential pullback to $20 could be anticipated.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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