Denial of responsibility: The findings of the following analysis are the sole views of the author and should not be considered investment advice
of the avalanche [AVAX] Steady growth over the past month has supported bullish efforts to recover the vital $25 support. Also, the altcoin anchored above the 20/50/200 EMA while showing bullish behavior.
However, its recent rally has seemingly been slowed by the resistance near $27. A convincing close below the current pattern could see a short-term pullback before a possible recovery from a series of defensive levels.
At press time, AVAX was trading at $26.03, up 1.89% in the past 24 hours.
4 hour AVAX chart
After nearly matching its yearly lows at the end of June, the market’s resurgence helped the ABAX make a series of higher highs and lows on the chart. The altcoin recorded a return on investment of over 70% after reviving from support at $15 and hitting a two-month high on August 7.
Meanwhile, this buying pressure allowed a breakout of the $25.4 level from resistance to immediate support. Additionally, the 20 EMA (red) and 50 EMA (blue) were still looking north as the broader narrative reflected a bullish edge.
However, the sharp development in a bullish channel (white) marked a patterned break. If the current candlestick develops into a strong bearish, the alt would confirm an Evening Star Candlestick pattern. Unfortunately, the north-facing EMAs along with the Point of Control (POC, red) could provide solid support to the alt’s ongoing rally. In this case, potential targets would be in the $24-$25 range.
A potential breakout from this range could lead to renewed buying pressure that could help buyers retest the $27-$28 resistance range in the coming sessions.
The Relative Strength Index (RSI) resonated with a strong bullish force, while signaling a slight reversal from overbought territory. A swing above the 59-61 range could help buyers continue the gradual growth of the alt.
However, recent gains on the chart have been accompanied by lower peaks on the volume oscillator (VO). This reading hints at a relatively weak upside move. Also, the CMF made lower highs but held its position above the zero point to illustrate a slight buying advantage.
Given the breach of the $25.4 level alongside a comfortable position above the 20/50/200 EMA, AVAX could see a sustained revival in the coming days. Even so, the Evening star candlestick pattern could play spoilsport by promoting a retest of the POC area ahead of this development. The objectives will remain the same as mentioned above.
Finally, a broader sentiment analysis should be considered alongside chain developments to make a profitable move.