๐ฑ๐ฅAVAX and FLOKI โ 2 Altcoins Show Bullish Divergence, May Trigger Price Rallies ๐๐ ๐
Can #AVAX Reclaim Horizontal and Diagonal Support?
Similarly to ADA, the $AVAX price has fallen under a descending resistance trend line since its yearly high in March. So far, it has made five unsuccessful breakout attempts (red icons). The descending resistance trend line coincides with the $28.50 horizontal resistance area.
Similarly to ADA, the daily time frame RSI and MACD have both generated bullish divergences (green). While there is a longer-term bullish divergence that has developed in the MACD, compared to ADA, the bullish divergence signal is weaker because it has not occurred at a horizontal support area and is not combined with a reclaim.
If the AVAX price breaks out, it can increase to the next resistance at $41.50. If that does not happen, the next support is at $19.
Can #FLOKI Reclaim Long-Term Pattern?
The final altcoin that has generated a bullish divergence is $FLOKI . While the divergence presented itself at the $0.000128 horizontal support area, it occurred after a breakdown from an ascending parallel channel. So, the FLOKI price has to reclaim this channel to invalidate the previous breakdown.
However, the positive reading for FLOKI comes from its wave count, which shows a completed A-B-C correction where waves A: C had an exactly 1:1 ratio. So, if FLOKI reclaims the channelโs support trend line, it can increase to its midline at $0.000270. Conversely, a rejection from the support can lead to a drop to the next horizontal support level at $0.000056.
