Avanlance’s AVAX tokens show signs of recovery after painting a classic bullish reversal pattern.
AVAX price roses to $35?
Known as “double bottom”, this pattern appears when the price sets up a support level, rebounds, corrects after finding a new resistance level, pulls back to the previous support level, and bounces back to the resistance level to pursue a breakout.
Since 27 May, AVAX price trend has gradually formed a double bottom. Specifically, AVAX/USD pair on the 4-hour chart has jumped twice after testing the same support level at about $22,25 and is currently breaking over its resistance level – also called “neckline” — near $27.50.
If AVAX surpasses $27,50, especially in trading volume, then the upside target will be at the length of maximum distance between the double bottom’s support and neckline levels.
That would put the Avalanche token on its way to $35, up 30% from June’s price.
Conflict bearish scenario
AVAX is trading at about 82% bellows its peak of $151 in November 2021. During the correction, AVAX/USD formed multiple consolidation channels but then broke out of them to extend its downtrend further, which could spoil the bullish scenario.
Looking at the daily timeframe, AVAX has been consolidating in a similar channel since May 2022, fluctuating between falling trendline resistance and horizontal trendline support. When placed together, these trendlines form a “descending triangle,” which can also be called continuation pattern.
Therefore, AVAX is at the risk to plunge from descending triangle and direct to the downside. Meanwhile, in a perfect scenario, tokens will fall as mục as descending triangle height, when measured from the breakout point.
This put AVAX descending triangle near $13,25, down more than 50% compared to price on June 6.
(Reference: CoinTelegraph)
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