Avalanche (AVAX) established a double bottom signaling possible reversal of the trend having suffered from months of loss.
Crucial support at $23.55 is being held and the near-term resistance at $25.33 is opposing.
Breakout confirmation may lead to $35.53 and $52.65 routes should momentum be maintained.
Avalanche (AVAX) has recently exhibited a possible change in market structure after maneuvering out of an extended downtrend with a breakout. As of the latest trading session, AVAX is priced at $25.32, registering a modest 1.4% daily gain.
The cryptocurrency is also up 0.5% against Bitcoin, trading at 0.0002438 BTC. Although the short term move has generated attention, the price action around the current support zone seems to be a pivotal determinant in its next move.
Double Bottom Structure Forms Bullish Foundation
The AVAX/USDT chart shows an important technical development. A double bottom pattern created between March and April is indicative of a reversal in the opposite direction of the existing trend.
After this, AVAX managed to overcome a descending resistance line in late April and continued to escalate as the month of May approached. This bullish breakout was supported by a rise in buying pressure as prices move above the $23.50 resistance acting as a key support.
Resistance Holds, But Momentum Builds
According to the chart, AVAX is experiencing a resistance at $25.33, which is quite close to the levels of short-term price rejections. Despite an hourly dynamic within the last 24 hours that has the AVAX price range from $23.50 to $25.33 back within the support level, the buyers are yet to lose control over the coin.
https://twitter.com/THEFLASHTRADING/status/1922175031510983110 Price Targets and Potential Scenarios
If AVAX succeeds in staying above $23.55, and bulls push it up and above $25.33, then the next resistance levels to watch out for will be seen at $35.53 and $52.65. These levels are built on the old price clusters and Fibonacci extensions which suggest that they could be a resistance level during an uptrend. Failure to retain the current backing, however, could open doors for downtrend pressure on AVAX, revisiting lower supports at the $21 area.
Outlook Hinges on Market Confirmation
The next few sessions may be critical for AVAX, as we see the technical indicators also turning bullish coupled with the broader market indicating recovery signs. A straightforward close above $25.33 with follow through buying volume may confirm the bullish setup.
