Avalanche (AVAX) surged over 10% and broke the $28.00 resistance. It is now consolidating gains and might aim for more upside.
Avalanche Price Restarts Rally
After forming a base above the $22.00 level, Avalanche started a steady increase. It settled above the $25.00 pivot level to set up for a fresh surge. Finally, the bulls came into action and pumped the price over 10%, beating Bitcoin.
There was a move above a key contracting triangle with resistance at $26.20 on the daily chart. It sparked a strong bullish move, and the price rallied above $28.00. AVAX traded close to $30.00. A high was formed at $29.93 and the price is now consolidating gains.
Avalanche is trading well above the $28.00 level and the 50-day simple moving average (blue). The current price action suggests a small chance of a downside correction. If there is a pullback, AVAX might find support near the $28.25 level since it coincides with the 23.6% Fib retracement level of the upward move from the $22.72 swing low to the $29.93 high.
If the bulls fail to protect the $28.25 support, there might be a larger downside correction. In the stated case, the price might slide toward the 50% Fib retracement level of the upward move from the $22.72 swing low to the $29.93 high at $26.30. The stated $26.30 region coincides with the same triangle breakout area and therefore could act as strong support.
A downside break below the $26.30 support could send AVAX further lower toward the 50-day simple moving average (blue) at $24.40. Any more losses could send AVAX toward the $22.00 support.
Fresh Upside In AVAX?
After completing a short-term consolidation or correction, Avalanche could start a fresh increase. On the upside, immediate resistance is near the $29.80 level. The first major resistance is near the $30.00 zone.
A close above $30.00 could send AVAX price toward $32.00. In the stated case, the bulls may perhaps aim for an upside break toward the $35.00 level. The next major resistance is $36.20 level. Any more gains might open the doors for a move toward the $40.00 barrier.
Overall, AVAX price is gaining pace above the $28.00 level. The current price action is bullish, suggesting a fresh upward move toward the $32.00 level. If not, there could be a downside correction toward $26.30 or even $24.00.
