Technical Analysis (AVAX/USDT)
1. General Appearance:
• It is observed that the price is forming an uptrend and breaking above a strong support area.
• The price turned the previous resistance level into support and reacted upwards from there.
• Breaking the blue trend line indicating the downtrend confirms the uptrend.
2. Target and Price Levels:
• First Target: 42.09 level. This stands out as the first resistance area that the price may reach.
• Second Target: 55.67. This is a strong resistance area in case the uptrend continues.
• The price reaching these target levels depends on maintaining the current upward momentum.
3. Support and Resistance Levels:
• Support Area: The 28.00 – 30.00 area could provide strong support in case the price pulls back.
• Resistance Area: There is a slight resistance at the 36.00 level, but after the upward break it may move towards the target levels.
4. Indicators:
• Moving Averages: If the price moves above the 200-day moving average, it indicates that the uptrend may continue.
• RSI (Relative Strength Index): It may be in overbought territory, which could signal a short-term correction. However, there are no clear signals of weakness yet.
5. Formations and Formation Reversals:
• Triangle Formation: The upward break of the triangle formation indicates a strong uptrend potential.
• Support/Reversal Formation: Price finding support from a previously resistance area is confirmation of a trend reversal.
6. Trend Direction:
• Short Term Trend: Up
• Medium Term Trend: Strong upward momentum
• Long-Term Trend: The bullish structure is maintained, but correction may occur before reaching the main targets.
7. Strategy and Recommendations:
• Buying Strategy: If the price pulls back to support levels, buying opportunities can be evaluated. Positions can be maintained as long as the uptrend continues.
• Stop-Loss: Below the 28.00 level, a stop-loss level can be determined for risk management.
• Profit Taking: Making gradual profit taking at the levels of 42.09 and 55.67 may be strategic.
• Volume Monitoring: An increase in volume should be observed for the rise to continue. Decreasing volume may indicate a decrease in momentum.
Conclusion:
• The current uptrend maintains a strong uptrend potential. However, short-term corrections may occur before target levels are reached. Risk management and profit-taking strategies are important. As long as the price remains above the determined support levels, the uptrend expectation continues.
