Avalanche (AVAX) Reinforces the reason why it may rise to $160 in the next few trading days because it broke the classic bullish pattern earlier this week.
is called”Bull flag,” This pattern will appear when the price is consolidating downwards/sideways between two parallel trend lines (flagpoles) after experiencing a strong uptrend (flagpole). Later, in theory, the price breaks through the channel range and continues The upward trend tends to rise as high as the height of the flagpole.
AVAX has gone through Similar price trajectories In the past 30 days, about 100% of the flagpoles rebounded to nearly 150 US dollars, and then more than 50% of the flagpoles retreated to 72 US dollars, and broke the flagpole’s upper trend line (about 85 US dollars) on December 15.
AVAX price After breaking through its bullish flag-shaped range, it continued to rebound, reaching nearly $120 on Friday, but focused on a bullish sustained target of further rise to around $160. This level appeared after adding the height of the AVAX flagpole (approximately $75) to the current breakout point close to $85.
A week full of bullish AVAX events
Due to a series of positive catalysts this week, the recent buying momentum in the avalanche market has been strong.
As Avalanche added, AVAX rose nearly 10.50% on Tuesday USDC native version, A stable currency pegged to the U.S. dollar issued by Circle on its blockchain.
In addition, a report written by an analyst at Bank of America Publish On December 10, Avalanche was called a viable alternative to the leading smart contract platform Ethereum. It coincided that AVAX rose another 16%.
On Thursday, after managing BitGo, a cryptocurrency custodian worth more than $64 billion in assets, AVAX rose to a two-week high. Announce It will support tokens.
Nonetheless, the mild sell-off at the top of local prices pushed AVAX down. As Avalanche announced the launch of a game accelerator program in cooperation with the web3 accelerator DeFi Alliance, it recovered on Friday.
1/ Avalanche is working with @DeFiAlliance Introduce its accelerator program to the Avalanche community
Apply here before January 7: https://t.co/6HcJOLxKxA
Before you apply, please check the following reasons why Avalanche should be your preferred platform: pic.twitter.com/GhdHBhQNgb
-Avalanche (@avalancheavax) December 17, 2021
All the events mentioned above point to the development of the Avalanche ecosystem.For example, in cooperation with USDC, the project promises to provide a viable alternative to Ethereum very expensive Tether (USDT) stable currency trading.
In addition, by making BitGo an institutional custodian of AVAX, Avalanche appears to be preparing to cater to qualified investors. Mike Belshe, CEO of BitGo, explained:
“Institutional custody is different from retail custody. The BitGo wallet and custody are designed from the ground up to meet the needs of institutional investors. BitGo is the only independent qualified custodian that focuses on establishing the right market structure and facilities to support institutions to enter the digital with confidence Asset area.”
AVAX price risk
Overall, one of the remaining downside risks surrounding AVAX is related to the performance of the crypto market.
Specifically, AVAC rose within a week, witnessing the entire cryptocurrency market value loss of more than 114 billion U.S. dollars, the leading crypto asset Bitcoin (Bitcoin) And ether (Ethereum) So far this week has plunged more than 7% and 5%.Concerns about the Fed’s reduction plan Catalyze the market sell-off.
Therefore, traders seem to see AVAX as their short-term hedge against the decline in the cryptocurrency market, which is mainly driven by a series of positive news.
In addition, at the time of writing, the AVAX/BTC currency pair has risen nearly 40% so far this week to around 0.00245 BTC, and the relative strength index (RSI) of the currency pair has entered the overbought zone. This may prompt AVAX to weaken against BTC in the next trading day.
A similar result may occur in the case of AVAX/USD because its weekly RSI is close to the overbought level.
However, as long as it stays above its 20-week exponential moving average (20-week EMA) as support, the currency pair may maintain its bullish tendency. As shown in the figure above, since August 2020, Green Wave has been restricting AVAX’s downward attempts.
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