The bullish pattern established in this cycle could lead AVAX to gains of up to 20% in the medium term.
Avalanche Network is a smart contract-capable platform whose goal is to improve Blockchain technology in terms of interoperability, scalability, and usability. Its native token is AVAX, and it is a utility token, a medium of exchange within the Avalanche ecosystem.
It is a cryptocurrency with a large capitalization, and that has come to be worth 10 times its current price. However, the risks of investing in this type of cryptocurrency must be carefully considered, given its extremely high volatility. Also, it is important to keep in mind that past performance does not guarantee future benefits.
Considering the above mentioned, with the growing uncertainty in the cryptocurrency market since 2022, the Avalanche (AVAX) price is actively resonating, between a horizontal resistance at $18 and a rising support trend line. In technical analysis, this structure is called an ascending triangle pattern, which is one of the most well-known bullish continuation patterns.
Historical Summary
In the last three weeks, the AVAX price has rallied at least three times from the key levels of the triangle pattern. Said recovery can be evidenced as levels higher than the previous minimums. on the graphs, and, based on the established pattern, this indicates that traders should see the AVAX price register even higher valuations.
Currently, the price of AVAX sits at around $17.87, according to data from CoinGecko. In this range, the price is showing signs that it can break the next resistance, located at $18.
However, achieving this will not be easy, as there is a strong selling region above this level. Selling pressure persists at the aforementioned resistance; consequently, the AVAX price is likely to pull back lower and prolong the ongoing consolidation phase, which in other words, means staying sideways before retesting new highs.
On the other hand, the breaking of said resistance could lead AVAX to achieve new levels, as the buying force consolidates.
What to Expect
Theoretically speaking, the formation of a new higher peak in the asset price, under the influence of a triangle pattern, indicates a gradual growth in optimism. The dynamic support trend line reduces its distance between the neckline resistance, which, in turn, allows the bulls to make a significant breakout, surpassing resistance with strong volume.
Therefore, a possible break of the resistance at the $18 level will release the accumulation of bullish momentum, and push the price of AVAX up by 10%, to reach $19.6.
However, if the trend continues, the price should go to the top of this movement: the region of $21.60. This would mean an increase of almost 20% compared to the current price.
A less likely but possible break below the support line of the trend will invalidate the bullish assumption and could prolong the previous downtrend. In this case, the first correction support is in the range of $16.45 and $15.30.
According to CrytoPredictions, AVAX’s price for today (07.04.2023) is forecast to be in the price range of $15,348 – $22,571. The Avalanche price is forecast to end today at $18,057.
By Audy Castaneda
