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28 March 2024
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Avalanche price analysis: Piercing candlestick pattern on the AVAX chart can be a sign of a reversal

  • Volumes during the last 24 hours are high
  • Piercing pattern followed by bullish marubozu on the daily chart
  • Breakout possibility from descending triangle.

Tradingview

AVAX has formed a descending triangle on the daily charts and is headed for a possible breakout after the formation of the piercing pattern followed by a strong bullish marubozu candle. The support level at $ 77.15 is a key support level for the coin. It tested this support level successfully and is headed for a bullish run. The RSI also indicates that the coin is not overbought and traders could express interest going by the technicals. There is strong resistance for the coin at the level of $ 140. The coin fell by close to 50% from its peak of $ 140+. 

Tradingview

On the hourly chart, the coin has slowed down its rapid appreciation. The coin has a support level in the thereabouts of $ 76 and a resistance zone at $ 91.8, followed by one at $ 94.65, followed by $ 96.65. The volumes in the last 24 hours have been very good and this could be an opportunity for trend reversal. If the coin is able to break the resistance at $ 96.65, the coin could see a huge uptrend. This is very likely to happen due to the volumes clocked in the last 24 hours and also the breakout opportunity on the daily charts.

Conclusion: 

The coin is poised to show bullish behavior going by the possibility of a breakout from the descending triangle and also the volumes have been very good on the hourly charts. The RSI and the piercing pattern as well hint at bullishness.

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Support: $ 77.5

Resistance: $ 94.65

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