AVAX Fluctuates Inside a Bullish Wedge, When Will it Breakout?
- AVAX has been dominated by the claws of the bears during the past seven days.
- AVAX fluctuates inside a broadening descending wedge, it could break out soon.
- Resistance lies ahead of AVAX but if it’s a conventional bullish wedge, AVAX could surge.
Avalanche has been dominated by the bears during the last week. For the first four days of the week, AVAX was fluctuating in the red zone just under the opening market price of $14.108. It emerged out of the red zone on a few occasions for a brief period of time before sinking below the opening market price. However, during the past week, AVAX reached a maximum price of $14.22.
AVAX/USD 7-Day Chart (Source: CoinMarketCap)
The above chart shows AVAX making lower highs mid-way through the fourth day. It continued making lower highs until the beginning of the seventh day and reached its lowest price of $12.93. However, after AVAX reached the bottom, it started to rise again and currently, it is priced at $13.27, after experiencing an increase of 1.08% in 24 hours.
AVAX/USDT 1-Day Chart (Source: Tradingview)
When looking at the chart above we could see that AVAX is fluctuating inside a broadening descending wedge. Although the top trend line does show much deviation from the horizontal axis, the lower trend line shows a massive angle, where AVAX makes lower lows.
If this is a conventional broadening descending wedge, then we could expect AVAX to hit the upper trend line which is close to Resistance 3 at $21. Nonetheless, since AVAX seems to be moving downward lately, we may see it reach Support 1 at $11.3. However, in the event that AVAX breaches Support 1 then it will be forced to rely on the lower trendline for support if it is to maintain this pattern.
In the event that AVAX surges, it may first find resistance at the pink line where section (2) meets the lower trendline. However, this could be an excellent entry for buyers. If AVAX breaks Resistance 1 at $15, then it may also reach Resistance 2 at $17. If the bulls don’t retrieve, then AVAX has the potential to reach Resistance 3 at $21.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
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