Altcoins
AVAX Poised for Gains as Altcoin Hits Measured 37% Move Target
- Avalanche price climbed 10% after hitting its measured 37% move target.
- AVAX could rise 5-10% to complete a trend reversal, supported by multiple buy signals.
- The bullish thesis will be invalidated on a candlestick close below $29.24.
Avalanche (AVAX) price, like most altcoins, is showing some strength after the fourth Bitcoin (Bitcoin) halving. This historic event, which inspired positive sentiment in the market, allowed capital to flow into other cryptocurrencies, including AVAX.
Read also : Avalanche price may need to drop 5-10% before AVAX bulls retest $80
Avalanche set for 6% to 10% gains
Avalanche price reached its measured target of 37% after a Head-and-Should (H&S) chart pattern formed between mid-February and April 10. With bulls defending the $33.30 support after hitting a low of $29.24, AVAX price could rise 6% to 10% in a full mean trend reversal.
Several technical indicators seem to be aligning, starting with the Relative Strength Index (RSI), which is climbing to show increasing momentum. Its crossing above the yellow band of its signal line is in itself a buy signal, reinforced by the one that is about to occur on the Moving Average Convergence Divergence (MACD).
Traders heeding this call to buy AVAX could see buying pressure spread Avalanche Price above the 50% Fibonacci mark of $40.03, marking the midline of the measured market range from $50.81 to $29.24, where buying and selling pressure peaked, respectively. Gains could peak after a 10% rally to around $42.74, followed by a brief consolidation and a retest of the $40.03 average level.
If the 50% Fibonacci support holds, it could serve as a starting point for Avalanche price to reclaim the range top at $50.81. This would constitute a 30% increase above current levels.
The Awesome Oscillator also shows increasing buying pressure as its histograms maintain a successive series of green bars moving closer to the mean line.
AVAX/USDT 1-Day Chart
Conversely, if early profit-taking sets in after 10% gains are made during the day, the AVAX Price could retrace. A break and close below $20.34 would produce a lower low, invalidating the bullish thesis.