Avalanche (AVAX) – Exhibiting a strong tone; Bullish reversal awaiting confirmationPosted on Thursday, March 31 2022 at 8:50 pm GMT+0000
Avalanche (AVAX) staged another exciting bullish run this week and is now confronting the February 17th high of 98.77, a decisive close above which will officially switch the five-month bearish bias to bullish.
The soaring and positively aligned Ichimoku lines are indicating that positive forces are about to take the reins, while the technical indicators are reflecting that positive impetus is gaining pace. The MACD is strengthening above its trigger and zero lines and the ADX is rising, while the +DI is holding well above the -DI line.
So, the bulls will need a clear victory above 98.77 to sustainably drive towards the 161.8% Fibonacci extension level of the February’s drop at 119.95. Clearing that barricade will further boost optimism that the upward trajectory might hold on for longer and open the way toward the 132.02 resistance, registered on December 23.
However, failure to convincingly overcome the 98.77 barrier could see a fresh test of the Tenkan-sen line at 92.13. A break lower could last until the critical 83.79 – 82.26 region, which encompasses the Kijun-sen line and the March 23rd low. Nevertheless, if selling forces intensify further and steer the price below that zone and the neighboring Ichimoku cloud, the February 24th bottom of 64.50 could come under fire.
All in all, Avalanche continues to exhibit a strong tone, but only a price’s triumph above 98.77 will formally confirm a bullish trend reversal.