Trading Opportunity for Avalanche $AVAX
Avalanche (AVAX) shows potential for a bullish move if the price can break the key resistance level at $26.70. Based on technical analysis on the daily and 4-hour charts, AVAX is currently trading within a descending channel that has formed over the past few months.
Daily Chart (1D)
On the daily chart, AVAX is moving within a descending channel, with the 200 SMA positioned around $30.33. Trading volume indicates reduced selling pressure, suggesting potential consolidation at the support level around $25.
4-Hour Chart (4H)
On the 4-hour chart, AVAX also shows a descending channel pattern with resistance at $26.65. A breakout above this level would indicate a trend reversal and potential short-term upside towards the $28 area.
Trading Opportunity
If the price breaks above $26.70, traders can anticipate short-term bullish momentum with the first target at $28 and the second target at $30.82 (200 SMA on the 4H chart). However, if the price fails to break this resistance, there is a risk of returning to the support around $24-$25 & 22-18
The $26.70 level is crucial in determining the direction of AVAX's price movement. A breakout above this level could provide a trading opportunity with short-term bullish momentum. However, remain cautious of volatility and set stop-loss orders to manage risk.
Disclaimer: This article is for informational purposes only and should not be considered financial advice.
