AVAX price shows pullback potential. Key levels have been defined.
AVAX price for a quick 1-to-1
Avalanche’s AVAX price could be developing the bottom for a countertrend rally. The bulls have printed an inverted hammer with an uptick in volume followed by an additional bullish engulfing candle on the 12-hour chart. A bullish divergence pattern on the Relative Strength Index accompanies the market’s bottom-looking structure.
AVAX price is currently auctioning at $17.58 as the Ethereum-based gaming token has successfully breached the 8-day exponential moving average. Consolidation occurs while the Relative Strength Index hovers over bullish terrain after printing a bullish divergence that prompted the first spike upwards. If the market is genuinely turning bullish, a rise towards $20.50 stands a fair chance of occurring.
The 21-day simple moving average rests within the $18 zone. Claiming this barrier could help forecast a larger price projection in the days to come. Asking for more than a 1-1 trade setup the 61.8 Fibonacci Retracement level (of the previous bull run) may be too risky at current time.
Invalidation of the bullish countertrend play is a breach below the June 18 swing low at $13.79. If the bears breach this level, an additional drop could occur, targeting $10. Said price action would result in a 40% decline from the current AVAX price.