- AVAX / USD rebounded from a low of $ 34.97 to a high of $ 41.45 in Wednesday’s intraday session
- The AVAX / BTC is at 0.00070, up 8.84% at the time of going to press.
- AVAX currently ranks 40th with a market dominance of 0.21%
AVAX / USD was pierced in a strong accumulation phase from the moment the price action projected a retracement after introducing an ATH of USD 63. The price movement of AVAX on the daily chart is limited within the right-angled descending broadening formation. This megaphone-like structure indicates an upward breakout 64% of the time. AVAX is currently trading at a low of 38% against the ATH, and a break in the two-month accumulation period will provide the basis for a 42% rebound.
On the other hand, a bearish scenario could expose the 100 EMA (green) as temporary resistance. While it may appear that price action is tending to breakout, the bear strategy could be to confuse the bulls, leading to a fakeout scenario.
A rebound from 0.5 FIB awaits on the 4-hour chart
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The SuperTrend indicator on the 4-hour chart of AVAX / USD triggered a sell-signal due to the price movement the bears are facing. However, the bearish scenario will become invalid if the 36.23 (FIB 0.5) steps in to retest as support. However, a key closing price below FIB 0.5 would leave AVAX vulnerable to the wrath of the bears, which would lead to further price drops.
The MACD on AVAX’s 4-hour chart recently saw a bullish crossover, as shown by the histogram, which is still expanding at press time.
The RSI, on the other hand, continues to accelerate downwards around 52. While this level is not necessarily oversold, it is an excellent buying opportunity. A bullish cross has already occurred on the weekly stochastic RSI.
CONCLUSION: Although most of the technical indicators dictated a strong buy signal for this token, a case of bearish entanglement was noted over the 4 hour period. This could cause the price to drop for a small drop. Overall, the AVAX bull rally is about to awaken and speculators can expect strong moves in the upcoming trading sessions.
SUPPORT: $ 22.09, $ 36.23
RESISTANCE: $ 41, $ 63.65