The Avalanche price (AVAX), is expected to rise by 24%, or $32, during its consolidation period. A breach would cause AVAX to move closer towards the resistance or hurdle level of $25 if it was projected above the descending parallel channel.
A bull run is possible after AVAX maintained support at $22.50. Avalanche recently fell to $25 because of strong selling activity. The rebound was seen during the last week in July.
The challenge here lies with AVAX ability to soar above the descending parallel channel to stir up a spike of 24% from along the neckline of the inverse head-and-shoulders (H&S) pattern.
TradingView.com Chart
Avalanche Can Cut Through Resistance at $25
To establish the bullish reversal following the token’s slump in the last couple of month, AVAX price retested the $25 resistance levels twice without breaching it. The token nosedived a bit from July 22 to 26 giving way to an inverse H&S pattern, which when validated, may pump up AVAX price by 25%.
AVAX will need to break the descending parallel channel to give the token enough power to break through resistance at oHo $29.50. AVAX price should remain above the 50 day SMA, to avoid bearish corrections within the range of $22.50 and $99.50.
The social significance or social volume metric of AVAX has spiked immensely as seen in the period from July 26 to August 3 implying a bullish momentum as AVAX is gearing up to move at the support seen at $22.50.
Increased investor interest with the AVAX Hackathon
The token’s supposed rally towards $32.00 could happen with the increase in investor interest. Meanwhile, the launch of Avalanche’s hackathon happening in Seoul is a widely anticipated event as it brings together the most popular and reputable icons in Web3 such as Tracey Bowen, Mark Shim, and others.
It will be held between August 11-12 and is expected to cause a rise in AVAX’s price to $32.
CoinMarketCap says that Avalanche is currently showing a bearish swing. The resistance level at $24.09 was noted and support levels at $22.99 were spotted. AVAX has fallen by 2.65%, or $23.27 at the moment.
A daily chart showing AVAX price shows token prices have been falling as buyers weren’t able to push them past $24.09 resistance. A head-and-shoulders pattern is also evident, which suggests that prices could plunge to $22.99 support and $24.09.
Crypto market cap total at $1.03 trillion according to the daily chart | Source: TradingView.com Featured image taken from AAX Academy - Chart by TradingView.com