Avalanche Price Reversal Hints at Further Upside Potential — Can AVAX Hit $30 Next?
AVAX made a higher high today, indicating a potential starting uptrend. Is this enough to confirm the bullish reversal?
Key Takeaways
- AVAX has gained over 27% since its low on Aug. 5.
- Higher low and high suggest a potential new bull phase.
- Reversal is likely confirmed with AVAX, targeting $28-$30.
Avalanche’s AVAX token has shown positive signs since its Aug. 5 low of $17.50, gaining over 27% by Aug. 8.
On its subsequent downturn, it held above, effectively leaving a higher low of $20 on Aug. 16 and continuing its upward trajectory, making a higher high of $23.70 today, Aug. 21.
Considering that we’ve seen a higher low and a higher high, this could be an early sign of a starting bull phase for AVAX.
AVAX Price Analysis
After reaching a peak of $65 on March 18, AVAX‘s price experienced a sharp decline to $30 by April 13, leading to 55 days of horizontal trading.
This consolidation phase ended with a breakout above the $30 mark, reaching $41 on May 22. Since then, the price has been in a downtrend, potentially making its final move to the downside.
The $65 high marked the end of a significant uptrend that began at $9 in October of the previous year. It formed part of a five-wave impulse within a larger bull cycle, which then transitioned into a correction phase.
Analyzing the wave structure suggests AVAX likely ended its C wave in a corrective ABC pattern on the Aug. 5 low.
The daily chart’s RSI reached the oversold zone at 25%, indicating that the low was in. In addition, the daily chart MACD formed a golden cross on Aug. 17, confirming the starting uptrend.
Is a Reversal Confirmed?
If AVAX is still starting a new five-wave uptrend, we have already seen its first two sub-waves develop until Aug. 18, when its next upward advancement began. If our count is correct, this is wave 3, potentially bringing AVAX to $28 at the 1.618 Fibonacci extension level.
A bullish reversal will be confirmed if this develops as a stronger move than a previous one. In that case, Avalanche will have one more higher high ahead as it should complete a five-wave pattern. Its target is $30, which could vary depending on the momentum.
Alternatively, we would need to reevaluate our projection if the price finds resistance below $25 and sends AVAX back to $20.
