AVAX is moving up in the market and consolidating into a symmetrical triangle showing signs of a potential breakout. As of the time of this publication, the price is at $35.44, up by 2.98%. There are possible chances of a surge if it breaks through resistances. Finally getting some market interest as technicals are strong, traders are asking: Will AVAX hit $60?
Symmetrical Triangle, Inverted Head-and-Shoulders Patterns
AVAX price action is set for a big upside breakout. The symmetrical triangle; a bullish indicator- is forming, and the price is consolidating into a tightening range.
Adding to this, the inverted head-and-shoulders pattern with head at $32.67 and shoulders on either side is adding to the bullish case. This pattern often means a reversal of bearish momentum and a rally.
The levels at $43.50 and $60 are the strong resistances. Breaking above $43.50 would be a big green light for the bulls to run and then $60 would be the first target in this structure. However, failing to hold above $43.50 could kill the whole bullish story, so these levels are important to watch for traders.
Technicals Are Bullish
AVAX technicals also support the breakout:
Stochastic RSI: Stochastic RSI is at 31.91, bearing oversold conditions, which could suggest an imminent rebound.
Williams Alligator Lines: Alligator lines are compressing at 35.31, 37.23 and 38.71. A spread in these lines could mean some price action.
These lines frame the price action around key resistances and supports. Traders are advised to be cautious but still optimistic about the technicals.
Market Interest Rising For AVAX
Other signs of growing bullishness for AVAX are market activity where Open Interest is up by 1.61% reaching $706.52 million as traders are positioning for a breakout.
Also, longs liquidated totaled $348.35K, and shorts totaled $172.07K, meaning increased volatility which often precedes high price action. Since the volume is rising with Open Interest, this means traders are expecting the next move from AVAX.
In essence, bulls need to take control of resistance to cushion the price during volatility.
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Is AVAX Ready to Target $60?
Avalanche consolidating within the symmetrical triangle and with strong technicals and market interest in the asset is looking good for the rally. If AVAX breaks above $43.50 and holds, then $60 is very likely.
However, as with every market, there are risks. If AVAX can’t break out of key resistances, the whole bullish story might get nullified and AVAX might be vulnerable to retracement . Investors are to be cautious with the situation and watch both technicals and macro market.
Conclusion
Avalanche looks good for a bullish breakout since the symmetrical triangle and inverted head-and-shoulders pattern with technicals are pointing to a very likely uptrend. As a result, the hope is for AVAX to hit $60 anytime soon.
Traders are watching levels as market interest in the token is rising, the next move of Avalanche will dictate its direction for the next few weeks. For now, AVAX is looking good for a rally to be among the top alts.
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FAQs
1. What is a symmetrical triangle pattern, and how does it affect AVAX?
A symmetrical triangle pattern is a consolidation where price forms narrowing ranges. This usually precedes a breakout and in AVAX’s case, it’s an uptrend.
2. Why is $43.50 a resistance for AVAX?
$43.50 was chosen as the resistance because, many times, AVAX has failed to break above this level. If it breaks this, AVAX could head to $60.
3. What role do technical indicators play in AVAX’s price action?
Technical indicators like Stochastic RSI and Williams Alligator lines are used to measure momentum and trends. For AVAX, these indicators are showing oversold and consolidation before a breakout.
4. What is Open Interest and why is it important for AVAX?
Open Interest is the total number of open contracts. More Open Interest in AVAX means more participants and speculation of big price moves.
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