Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation
Avalanche has damaged out of a descending channel just lately and had a bullish outlook within the days to return. The buying and selling quantity behind AVAX was fairly excessive in late February, touching the $600 million mark (for a 24 hour period) persistently throughout that short-term rally. This was accompanied by a rise in worth for AVAX from $65 to $90. Up to now few days as effectively, the buying and selling quantity has been choosing up and touched the $400m and $600m mark. Alongside the rise in quantity, a bullish chart sample additionally seemed to be growing.
AVAX- 1H
Supply: AVAX/USDT on TradingView
Up to now few days, the worth had been buying and selling inside a descending channel (yellow) and had damaged out of the channel. A flag sample appeared to type previously couple of days. The sturdy surge from $67 to $81 shaped the flag pole (pink) and the following descent has shaped a channel (purple) that’s the flag of the sample.
To the upside, the $81-$82 space (purple field) has acted as a provide zone in latest weeks. Sellers have been fairly sturdy on this space, and the following shopping for alternative for AVAX may come up as soon as this area is flipped from provide to demand.
Rationale
Supply: AVAX/USDT on TradingView
The RSI on the hourly chart stood at 57.7 and has proven sturdy bullish momentum previously few days. The RSI’s drop from overbought territory again beneath the 60 worth meant that momentum had reset on the decrease timeframes and will see one other leg upward quickly.
The OBV has additionally been on a robust run upward just lately. This was a sign that purchasing quantity has outweighed promoting quantity previously three days, and the rally was a real rally backed by regular demand.
Conclusion
A retest of the $77.3 stage as help may very well be used as a shopping for alternative. Alternatively, a breakout from the potential flag sample, in addition to a transfer previous $82, may additionally function a set off to search for entries for an extended place on Avalanche.
