Avalanche eyes 47% gains after breakout from a bullish technical pattern

Avalanche prices have formed a bull flag on its daily charts. Image from Avax.network
Avalanche prices have formed a bull flag on its daily charts. Image from Avax. network

Key Takeaways:

  • AVAX prices eye a jump to $160 as its prices form a bullish technical pattern.
  • Avalanche announced launch on BitGo and Flexa.

NEW DELHI (CoinChapter.com) — Avalanche, currently the tenth largest cryptocurrency by market cap, painted a bullish technical pattern on its daily charts.

AVAX prices are moving in a bull flag pattern. In detail, a bull flag pattern is a continuation pattern that occurs as a consolidation period following a strong price action upwards. The pattern looks like a downward sloping channel formed by two parallel trendlines against the preceding trends.

Avalanche jumped 46% since Dec 14, from Tuesday’s low of $76 to Dec 16’s high of $111. The Avalanche token rebounded from its 100-Day MA trendline, which provides support at the $78.7 price level. Furthermore, AVAX’s 50-day MA and 26-day EMA trendlines form a support confluence near $95.

AVAXUSD daily charts with bull flag and MACD. Source: Tradingview.com
AVAXUSD daily charts with bull flag and MACD. Source: Tradingview.com

AVAX has broken above the bull flag channel. The price target from the bull flag breakout is near $159, a further 47% gain from current price levels. However, the uptrend faces immediate resistance at $118. If bulls push above immediate resistance, the next target would be $133.

Also Read: Avalanche falls 34.3% below recent ATH, tests key support level.

Meanwhile, trend-based momentum oscillator MACD charted bullish crossover on Dec 16. A bullish crossover occurs when the MACD line (difference between 12-day and 26-day EMA) moves above the MACD signal line (9-day EMA of MACD).

AVAXUSD daily charts with bull flag and MACD. Source: Tradingview.com
AVAXUSD daily charts with bull flag and MACD. Source: Tradingview.com

Bullish crossover indicates a shift from bearish to bullish momentum for Avalanche. However, the Avalanche token needs to continue its uptrend for the momentum to stay bullish.

Additionally, the relative strength index for AVAX is currently neutral, with a value of 55.84.

Avalanche Launches On BitGo and Flexa

On Dec 16, Avalanche announced BitGo, a digital asset financial services firm, has launched support for AVAX and assets launched natively on Avalanche’s C-Chain. In addition, BitGo would support the Avalanche token across its custody services and hot wallet products.

Recommended: AVAX price rallies 15% in two days as Avalanche blockchain integrates stablecoin USDC.

Moreover, launch on BitGo would provide its more than 600 clients across 50 countries exposure to Avalanche’s native tokens. BitGo is trusted by some of the world’s largest institutions and more than 150 exchanges.

BitGo is excited to provide our institutional clients access and safe custody to Avalanche as we see the strong demand for a more efficient DeFi ecosystem.

Mike Belshe, CEO of BitGo, said

In addition, partnering with BitGo would likely help accelerate institutional and enterprise interest in Avalanche.

Flexa, a cryptocurrency payment network, has also announced support for AVAX on its platform. Flexa makes it easier for merchants to accept crypto payments at the point of sale.

At the time of writing, AVAX was trading at $106, up 4.6% on the day.

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Avalanche, Avalanche eyes 47% gains after breakout from a bullish technical pattern

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