2023-1-28 19:00 |
The Avalanche (AVAX) price is correcting after a significant increase. After the correction is complete, the continuation of the upward movement is likely.
The technical analysis from the daily time frame shows that the AVAX price had decreased below a long-term descending resistance line since Aug. 8. This led to a low of $10.54 on Dec. 30.
The price has been increasing since and broke out from the resistance line on Jan. 10. This led to a high of $18.97 on Jan. 24 (red icon).
However, the price created a bearish candlestick (red icon) and fell slightly. The decrease validated the 0.382 Fib retracement level at $18.36 as resistance. Moreover, it confirmed a bearish divergence that has developed in the daily RSI.
Due to these factors, the AVAX price may retrace in the short-term. In this case, the closest support area would be at $15.77, created by the 0.382 Fib retracement support level (black).
On the other hand, a breakout above the $18.36 region could take AVAX to $27.17, the 0.618 fib retracement resistance level (white).
Due to the bearish divergence and bearish candlestick, a rejection and decrease are slightly more likely.
AVAX/USDT Daily Chart. Source: TradingView Avalanche Price Prediction for Feb: Correction Will Be Followed by BreakoutThe price chart from the six-hour supports the possibility of a correction. It seems that AVAX token has completed a five-wave upward movement (black), which had an extended wave three. The sub-wave count is given in red. If the count is correct, the AVAX price will correct toward the 0.382-0.5 Fib retracement support levels at $14.81-$15.80 before resuming its upward movement.
As a result, the Avalanche price prediction for Feb. is bullish since the upward movement will be expected to continue.
A drop below the beginning of the upward movement at $10.64 would invalidate this bullish AVAX forecast. In this case, the price could fall to an average price of $9.50.
AVAX/USDT Six-Hour Chart. Source: TradingViewTo conclude, the Avalanche price prediction for Feb. is bullish. After an initial correction, an upward movement toward at least $23.17 is expected. Conversely, a fall below $10.64 would invalidate this bullish scenario and catalyze a drop toward $9.50.
For BeInCrypto’s latest crypto market analysis, click here.
The post Avalanche (AVAX) Price Rally Stalls but $23 Still Within Reach appeared first on BeInCrypto.
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