Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
avalanches [AVAX] steady growth over the past month has supported bullish efforts to regain the vital $25 support. Also, the altcoin anchored itself above the 20/50/200 EMA while exhibiting bullish behavior.
However, recent growth appeared to be witnessing a slowdown near the $27 mark resistance. A convincing close under the current pattern could mean a short-term pullback before a likely rebound from many defensive levels can occur.
At the time of writing, AVAX was trading at $26.03, up 1.89% in the past 24 hours.
AVAX 4 Hour Chart
Source: TradingView, AVAX/USDT
After nearly matching its annual lows in late June, the buy rebound helped AVAX put a series of higher highs and lows on the chart. The altcoin registered an ROI of over 70% after reviving its $15 support and hitting its two-month high on Aug.
In the meantime, this buying pressure allowed the $25.4 level to flip from resistance to immediate support. In addition, the 20 EMA (red) and 50 EMA (cyan) were still looking north as the broader story reflected a bullish edge.
However, the steep growth in an ascending channel (white) saw a pattern break. Should the current candlestick evolve into a robust bearish, the alt would confirm an Evening Star Candlestick pattern. Unfortunately, the north-facing EMAs next to the Point of Control (POC, red) could provide solid support to the alt’s ongoing rally. In this case, potential targets would be in the $24-$25 range.
A possible rebound from this range could lead to renewed buying pressure that could help buyers retest the $27-$28 resistance range in the coming sessions.
rode
Source: TradingView, AVAX/USDT
The Relative Strength Index (RSI) resonated with strong bull power, marking a slight reversal from overbought territory. Sway above the 59-61 range could help buyers continue the alt’s gradual growth.
Nevertheless, recent gains on the chart have been accompanied by lower spikes on the volume oscillator (VO). This reading indicated a relatively weak bullish move. The CMF also recorded lower highs, but maintained its position above zero to reflect a small buying advantage.
Conclusion
Given the breach of the $25.4 level next to a comfortable position above the 20/50/200 EMA, AVAX could see a sustained rebound in the coming days. Still, the Evening Star candlestick pattern could be a bummer by driving a retest of the POC region ahead of this growth. The goals remain the same as discussed above.
Finally, broader sentiment analysis alongside on-chain developments must be considered in order to make a profitable move.