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Avalanche (AVAX) Price Forecast Looking Strong in Short-Term Despite Market Disarray

2 mins
Updated by Geraint Price
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In Brief

  • AVAX broke down from the $15 resistance area.
  • It created a double bottom pattern.
  • AVAX has broken out from a short-term descending resistance line.
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The Avalanche (AVAX) price is increasing after confirming a short-term bullish pattern. The long-term trend remains to be determined.

The AVAX price has decreased underneath a descending resistance line since reaching a maximum price of $30.89 on Aug. 8. On Oct. 13, it bounced above the $15 horizontal support area (green icon). The area had been in place since June 13. 

However, after another rejection from the line on Nov. 5 (red circle), AVAX began another downward movement. It broke from the $15 area on Nov. 9 and validated it as resistance the next day (red icon). So, the AVAX price prediction cannot be considered bullish until the price reclaims this area, which now coincides with the descending resistance line.

Despite the bearish price action, the RSI’s bullish divergence trend line (green line) remains intact. But, the indicator is below 50, which is considered a sign of a bearish trend.

AVAX Descending resistance
AVAX/USDT Chart By TradingView

AVAX Price Prediction: Double Bottom Leads to Breakout

The price chart from the four-hour chart is bullish. 

While decreasing below a descending resistance line, the Avalanche price created a double bottom pattern between Nov. 9 and 14. The double bottom is considered a bullish pattern. Moreover, it was combined with bullish divergence in the RSI (green line).

After bouncing over the past 24 hours, AVAX broke out from the resistance line. If the upward movement continues, the closest resistance area would be between $15.30 and $16.30, created by the 0.382-0.5 Fib retracement resistance levels. 

If the entire movement is an A-B-C structure, a high of $16.30 will give waves A:C a 1:1 ratio, giving more confluence to the latter target. Therefore, the short-term Avalanche price prediction is bullish.

Short-term AVAX price
AVAX/USDT Chart By TradingView

What Is the Long-Term Trend?

The long-term trend still shows bullish signs. 

Firstly, the AVAX price is still trading inside the long-term $14 horizontal support area. Secondly, the weekly RSI has broken out from a resistance line (black) and generated bullish divergence (green line). These signs usually precede upward movements. If one occurs, the closest resistance would be at $30.

However, the bearish readings from the daily time frame cast some doubt in this possibility. So, if a breakdown happens instead, the Avalanche future price could fall to $4.

AVAX Price long-term
AVAX/USDT Chart By TradingView

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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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