The avalanche (AVAX) has been gradually declining within a descending wedge since May 12 and possibly initiated a reversal on June 19.
AVAX has fallen since hitting an all-time high of $147 on November 21, 2021. So far, the downside has resulted in a low of $13.71 on June 19, 2022. The price has since risen and is currently trading at $17.
The weekly chart suggests that AVAX is trading within a long-term range between $12 and $40. The range previously existed between January and August 2021, prior to the breakout that led to the all-time high.
AVAX attempts breakout
The daily chart shows that AVAX has declined within a descending wedge since May 12th. The descending wedge is considered a bullish pattern, meaning that a breakout from it would be the most likely scenario.
Furthermore, the pattern has been paired with a significant bullish divergence on the daily RSI (green line), which supports the possibility of a breakout.
If there is a breakout, the first minor resistance area would be $28 while the next is $48. The former is a horizontal resistance area while the latter is the 0.382 Fib retracement resistance level when measuring the entire down move.
cryptocurrency trader @JacobEmmerton tweeted an AVAX chart saying that the price needs to complete one more move down before reversing.
Since the tweet, the price has hit the suggested target and bounced.
It is possible that AVAX has completed the third wave of a five wave down move as of early April and is currently in wave four (black). The number of partial waves is indicated in red.
Measuring the length of wave three, the next area of resistance would be $40 created by the 0.382 Fib retracement resistance level. This would fall between the two areas of resistance outlined earlier.
Thus, the wave number coincides with readings from the daily chart, suggesting that a significant upleg is on the way.
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