Avalanche (AVAX) has been gradually decreasing within a descending wedge since 12 May, and possibly triggered a reversal on 19 June.
AVAX has been declining since reaching an all-time high of $147 on November 21, 2021. So far, the downside momentum has been reached at $13.71 low on June 19, 2022. The price has been rising since then and is currently trading. at $17.
The weekly chart shows that AVAX is trading in a longer range range between $12 and $40. The range was earlier in the period between January-August in 2021, before the breakout that was at an all-time high.
AVAX attempts a breakout
The daily chart shows that AVAX has been declining inside a descending wedge since May 12. A descending wedge is considered a bullish pattern, which means that a breakout from it would be the most likely scenario.
Furthermore, the pattern is aligned with a significant bullish divergence on the daily RSI (Green Line), which supports the possibility of a breakout.
If there is a breakout, the first minor resistance area will be at $28, while the next one will be at $48. The former is a horizontal resistance area while the latter is the 0.382 Fibonacci retracement resistance level when measuring the overall downward movement.
wave count analysis
cryptocurrency trader @JacobEmmerton Tweeted an AVAX chart stating that the price has one more downward movement to complete before reversing.
Since the tweet, the price has reached the proposed target and bounced off.
It is possible that AVAX has completed wave three out of five wave downwards, and is currently in wave four (black), when measured since the beginning of April. The sub-wave count is given in red.
When measuring the length of wave three, the nearest resistance area will be $40, formed by the 0.382 Fibonacci Retracement resistance level. It will be between the two previously mentioned resistance zones.
Therefore, the wave count is in alignment with the readings from the daily chart, indicating that a significant bounce-back is likely to unfold soon.
be for[in]Latest Bitcoin (BTC) Analysis of Crypto, click here