#EntryOpportunity #BuyTheDip $AVAX
Avalanche (AVAX) double bottom setup an
d where you might consider buying to potentially ride an altcoin rebound.
Avalanche (AVAX) Double Bottom Setup Breakdown
1. Chart Pattern: Double Bottom
AVAX has recently tested a strong support zone around $18.50–$19 twice, creating two low points (the "double bottoms").
This W-shaped pattern suggests sellers tried pushing price lower twice but failed, signaling a potential bullish reversal.
2. RSI (Relative Strength Index) Indicator
The daily RSI is below 30, meaning AVAX is currently oversold.
An oversold RSI often precedes a bounce or reversal as buying pressure increases.
Where to Buy? Entry Zones
ZoneDescriptionRisk Level$18.50 – $19.00Key support and double bottom lowLow (good support)$20.50 – $21.00Midpoint zone, potential early breakoutMedium (some confirmation)Above $22.50Confirmed breakout above neckline (double bottom resistance)Lower risk (trend confirmed)
Suggested Strategy
Conservative Entry: Wait for AVAX price to break above the neckline around $22.50 with increased volume. This confirms the double bottom breakout and signals a bullish trend continuation. Enter with stops just below the neckline or recent support.
Aggressive Entry: Buy near the support zone $18.50 – $19.00 while RSI is oversold. This is riskier but offers better reward if the bounce happens quickly. Use tight stop losses below $18 to limit downside.
Potential Price Targets
First target: $25.00 — near recent resistance and psychological level.
Second target: $28.50 — prior swing high resistance.
Long-term: $30+ if bullish momentum continues.
How to Set Your Trade on Binance
Chart setup:
Open AVAX/USDT on Binance spot chart.
Use daily timeframe.
Add RSI indicator (14-period default).
Draw horizontal lines at $18.5, $19, $22.5, $25.
Buy orders:
Place a limit buy order around $18.50–$19.00 if you want to buy low and ride the potential bounce.
Alternatively, set a buy stop order slightly above $22.50 for confirmation breakout entry.
Stop-loss:
For low entry zone, place a stop loss 5% below support ($18).
For breakout entry, place stop loss just below $22.
Take profit:
Partial profit at $25 and $28.5, adjust trailing stops to protect gains.
Final Tips
Confirm volume increase on breakout above $22.5 — volume validates the pattern.
Monitor RSI climbing back above 30 to confirm oversold bounce.
Use dollar-cost averaging if uncertain, entering smaller portions near support and breakout.
Stay aware of overall market sentiment; altcoins can be volatile.