Avalanche price eyes upside move on bullish technicals

view original post

Avalanche price retests its weekly support at $22.89, bounces 9%, and trades 1% higher at $25.45 on Tuesday.
Technical analysis shows that AVAX has formed a bullish divergence on a momentum indicator.
A daily candlestick close below $21.89 would invalidate the bullish thesis.

Avalanche (AVAX) price tested its weekly support at $22.89 on July 5, rebounded by 9% the next day, and is currently trading 1% higher at $25.45 on Tuesday. Technical analysis reveals bullish divergence signals from the Relative Strength Index (RSI) and the Awesome Oscillator (AO), suggesting a potential upward rally ahead.

AVAX price shows potential for an upside move

Avalanche price retested its weekly support level of $22.89 on July 5 and surged by 9% on July 6. As of the latest update, it is trading 1% higher at $25.45 on Tuesday.

Additionally, on the daily chart, the formation of a lower low on July 5 contrasts with the Relative Strength Index’s (RSI) higher highs during the same period. This development is termed a bullish divergence and often leads to the reversal of the trend or a short-term rally.

If the $22.89 level holds, AVAX could rally 8.6% from its current trading price of $25.45 to tag its daily high of $27.61 on July 6.

Moreover, if AVAX closes above $27.61, it could extend an additional 15% rally to retest its daily resistance level of $31.36. This resistance level also coincides with the 50% price retracement level between $41.80 and $21.89.

AVAX/USDT daily chart

However, if the AVAX price produces a daily candlestick close below $21.89, it would produce a lower low in the daily time frame. Such a development would give rise to a bearish market structure. This change in market structure would invalidate the bullish thesis and catalyze an 11% crash in the Avalanche’s price to retest its low of $19.47 on November 28, 2023.

stocksdelivered.com is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of stocksdelivered.com are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.

The sender of this email makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.

The content on any of stocksdelivered.com websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options.

The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.

Disclaimer: Past performance is no guarantee of future performance. This product is for educational purposes only. Practical application of the products herein are at your own risk and stocksdelivered.com, its partners, representatives and employees assume no responsibility or liability for any use or mis-use of the product. Please contact your financial advisor for specific financial advice tailored to your personal circumstances. Any trades shown are hypothetical example and do not represent actual trades. Actual results may differ. Nothing here in constitutes a recommendation respecting the particular security illustrated.