Crypto nugget: Avalanche (AVAX) is gaining strength, will it hold up?

In this new analysis on Wednesday, we take a look at one of the most important blockchains in the cryptocurrency ecosystem. The goal is as follows: analyze the native token to take stock of the pricing structure. So you got it, AVAX is in the sights for the cryptocurrency nugget of the day. Is it in a favorable situation for a bullish evolution or, conversely, are the sellers out? Let’s go directly to TradingView.

This AVAX analysis is offered in conjunction with the Coin Trading and its algorithmic trading solution finally accessible to individuals.

AVAX in clearly bearish momentum

AVAX rate against the dollar weekly

After evolving under resistance during the early part of 2021, AVAX retreated during the summer of 2021. Thereafter, it exploded to the upside and recorded an all-time high at $ 147. AVAX has reversed and is now trading in a bearish swing pattern. This model has a high at $ 103.62 and a low at $ 13.71. Furthermore, the internal structure is still bearish. Until the $ 29.11 will not be resumed, we will not have a weekly reversal signal. Therefore, to better understand the recent evolution of the price, it is necessary to proceed on a shorter time scale.

If there is a trend change in the weekly time unit, we can consider new bullish targets. But, for the moment, there is nothing to report and we need to monitor the depression $ 13.71. In case of loss of the latter, AVAX it will most likely return below $ 9.32. This price action will allow him to seek liquidity below the weekly low of summer 2021. Without further ado, let’s now go to the daily time unit.

A lackluster trend on a daily scale

Price of the AVAX cryptocurrency against the dollar on a daily basis
AVAX price against the dollar on a daily scale (1D)

Although the swing pattern is also bearish in this time frame, we must see that the trend is bullish AVAX. So, we have to look at the evolution of the price between $ 13.78 and the $ 29.11. This upward trend materializes with the strength of the demand zones on which AVAX bounces every time. You can see that the bearish CHoCH point ($ 19.55) lies at the confluence of two demand zones, one of which is a trading zone. After breaking a rising supply zone (shown in red), the price has returned to the demand zone at the origin of this movement to rebound.

The price managed to initiate good bullish momentum within this swing pattern. The summit should theoretically be preserved. Therefore, the perfect retreat would be for the price to return to this level without closing up. To hope for a returnAVAX at this level, the asset must break the supply zone upward. This will allow for a breakout of the structure to maintain the bullish momentum of the internal structure. If AVAX stops its upward swing, this will trigger a change in structure over the weekly time frame. Conversely, the first sign of a bearish reversal would be a price return below $ 19.55. This breakout level could be increased if AVAX continues to record new highs.

Beware of AVAX’s situation against Bitcoin

AVAX price against bitcoin on a daily basis
AVAX price versus bitcoin on a daily scale (1D)

Against Bitcoin, we are in a key moment that will give AVAX trend in the coming weeks. The goal is simple: AVAX has to get out of the red zone, which is currently resisting. This would allow it to record a new peak to continue outperform Bitcoin. If it does, it will likely return to its maximum and, at best, we could see a change in structure on a daily basis. This would allow AVAX to do well to continue rising against the dollar in the event that bitcoin is also in a bullish configuration.

However, if it fails, it continues to register lower peaks and troughs than the previous ones. We will have a confluence of signals that could warn us of the end of the uptrendAVAX against Bitcoin. In fact, we will have the loss of an oblique support, the failure of the resumption of a resistance, and potentially the loss of a horizontal level that marks 50% of the Swing Range. If the first gray zone is lost, we will have to keep an eye on the first orange zone which is a supply zone as well as the lower levels that could mark AVAX’s recovery against bitcoin. On the graph you can find some notes on the different possible scenarios.

Here we are at the end of the analysis of a hasltcoin which managed to stay above the levels of summer 2021. Nothing is yet decided until a weekly price reversal is missed. At the moment, we are simply on a bullish correction within a bear market. So you have to monitor the key levels identified on the pair, both against the dollar and the bitcoin. As the daily trend is bullish, we need to consider reasonable bullish targets until proven otherwise. This will obviously depend on the dynamics against bitcoin and the path taken by the asset.

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