Will Avalanche (AVAX) price bounce back from $20 for a trendline breakout rally towards the $32.80 mark?
Avalanche is one of the fastest-recovering altcoins in the crypto market after the recent crash. The AVAX price marks an intraday surge of 1.92%, maintaining dominance near the $20 psychological support.
With growing buying interest, AVAX now aims to challenge the local resistance trendline. Will this bullish momentum lead to a breakout rally, or is another downturn ahead?
AVAX Price Trend: Signs of a Reversal?
In the daily chart, AVAX price action reveals a strong correction phase following a failed attempt to sustain higher levels. The recent downtrend has led to a bearish crossover between the 100-day and 200-day EMAs, increasing the risk of an extended bearish cycle.
Currently, the AVAX token trades at $22.33, hinting at a potential Morning Star pattern. This bullish pattern formed after a lower price rejection from $20.30 yesterday, suggesting strong support at this level.
Further strengthening the bullish outlook, the daily RSI line exhibits a bullish divergence, indicating a potential trend reversal in the AVAX market. If buyers sustain the momentum, AVAX could soon challenge the overhead resistance trendline.
Whale Accumulation: A Positive Signal for Avalanche?
Fueling hopes for a bullish comeback, Avalanche’s network has experienced a resurgence in whale transactions. According to IntoTheBlock, large transactions on the Avalanche network are resurging after a prolonged decline.
Over the last three months, whale transaction count dropped significantly, from 1.52K transactions per day to just 210. However, this trend has reversed, with whale transactions surging back to 490 on February 25.
This renewed whale activity suggests growing confidence in AVAX, which could drive a strong price recovery soon.
Key Price Levels: Aiming for a Breakout or Facing Rejection?
AVAX is positioned for a potential trend reversal with rising whale interest and increasing demand. According to Fibonacci retracement levels, a breakout above the resistance could propel AVAX toward the 38.2% retracement level at $32.80.
This key resistance zone aligns with the 200-day EMA at $32.48, making it a crucial hurdle for the bulls. On the flip side, AVAX remains vulnerable to further downside risks.
If the price fails to hold above $20, a bearish breakdown could drag AVAX down to $17.28, its previous major support level.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
