Key Takeaways:
- AVAX price started a major increase and cleared the $20 resistance.
- It broke a key contracting triangle with resistance near $13 on the daily chart.
- The current price action suggests a high chance of a strong move towards $28 and $30.
New Delhi(CoinChapter.com): Avalanche’s AVAX is surging above $20. The price is showing a lot of bullish signs and it could even rise towards the $30 barrier.
Avalanche AVAX Price Rallies Above Resistance
This past month, we saw a strong increase in AVAX price from the $10.50 support zone against the US Dollar. The price formed a base above the $10.50 level and started a fresh increase.
There was a steady increase above the $12 and $14 resistance levels. More importantly, it broke a key contracting triangle with resistance near $13.00 on the daily chart. It opened the doors for a strong increase above the $15 resistance.
The price gained over 25% in the past few days, outperforming ethereum and bitcoin. There was also a move above the 50% Fib retracement level of the main decline from the $30.89 swing high to $10.57 swing low.
It is now trading above the $20 resistance and the 50-day simple moving average (blue). On the upside, an immediate resistance is near the $21.85 level.
The next major resistance is near the $23.20 level. It is near the 61.8% Fib retracement level of the main decline from the $30.89 swing high to $10.57 swing low. A clear move above the $23.20 resistance zone could set the pace for a major rally.
In the stated case, the price could test the $26.10 level. Any more gains might open the doors for a move towards the $30 resistance.
Downside Correction?
Conversely, AVAX price might fail to clear the $21.85 resistance zone or $22. In the mentioned case, the price could start a downside correction. An initial support is near the $20.75 level. The next major support is near $20.
The main support is now forming near the $18.20 zone (a multi-touch region and a breakout zone). A close below $18.20 may perhaps increase selling pressure. In the stated case, the price might dive towards the $150 support or the 50-day simple moving average (blue).
Overall, AVAX price is showing positive signs above the $20 zone. If the bulls remain in action, it could rally above the $23.20 resistance. If not, there could be a fresh bearish wave towards the $20 zone or even $18.20.
