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Is Avalanche (AVAX) Price Ready to Resume Its Bull Rally?

2 mins
Updated by Geraint Price
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In Brief

  • Avalanche (AVAX) is following a descending resistance line.
  • The short-term RSI is bullish.
  • Avalanche (AVAX) could have completed an A-B-C correction.
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The Avalanche (AVAX) price shows signs of a completed correction but has not confirmed its bullish reversal yet.

AVAX is the native token of the Avalanche network, a blockchain platform that specializes in smart contracts. The AVAX price has fallen since reaching an all-time high of $147 in November 2021. The decrease led to a low of $10.54 in December 2022. The price has increased since. 

In January, the digital asset reclaimed the $15.50 horizontal area and validated it as support this month. 

While the price action shows bullish signs, the weekly RSI remains below 50 (red circle). Therefore, the long-term trend is not bullish yet.

AVAX has also followed a descending resistance line since August 2022. Whether it breaks out from the line or falls below the $15.50 area could determine the future trends direction. 

A breakout could lead to highs near $29, while a breakdown would likely lead to lows near $9.

Avalanche (AVAX) Price Movement
AVAX/USDT Weekly Chart. Source: TradingView

Has Avalanche (AVAX) Price Already Completed Correction?

While the weekly chart provides an uncertain outlook, shorter time frames provide a more bullish outlook. This is especially evident in the six-hour one. 

There are several reasons for this. 

Firstly, the price reclaimed the 0.618 Fib retracement level at $15.30 after previously deviating below it. As seen in the weekly time frames, such deviations are considered bullish development. 

Secondly, the six-hour RSI generated bullish divergence (green line). This is another sign associated with bullish trends. 

Finally, it seems that the price has completed an A-B-C corrective structure. If so, another upward movement has now begun. This count would be confirmed by an increase above the wave A low (red line) at $16.84. In that case, the AVAX token price would be expected to break out from the previously outlined resistance line and increase toward $29.

Avalanche (AVAX) Price Correction
AVAX/USDT Six-Hour Chart. Source: TradingView

To conclude, the most likely Avalanche price forecast is a breakout from a long-term descending resistance line and an increase toward $29. A movement above $16.84 would confirm this. On the other hand, a weekly close below $15.50 would invalidate this outlook and could lead to a fall toward $9.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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