Avalanche (CRYPTO: AVAX) shares are trading significantly higher Wednesday, even as the crypto market remained relatively flat. Many other popular cryptocurrencies, such as Dogecoin (CRYPTO: DOGE) are trading lower as Avalanche moves up to become the 10th biggest crypto by market cap.
Avalanche was up 29.52% at $104.41 at time of publication.
See Also: How High Can Avalanche Go?
Avalanche Daily Chart Analysis
- Avalanche recently broke out of an ascending triangle pattern and then had a perfect bounce off of the old resistance level. The $80 level held as resistance before the breakout, but became support after price moved above that level.
- The crypto crossed above the 50-day moving average (green) Wednesday, and trades above the 200-day moving average (blue). This indicates that Avalanche has entered a period of bullish sentiment and each of these moving averages may hold as an area of support in the future.
- The Relative Strength Index (RSI) has been curling back higher and now sits at 52 on the indicator. This reflects that buying pressure has now overtaken selling pressure and buyers have taken control.
What’s Next For Avalanche?
Avalanche made a textbook bounce off previous support after breaking out of the ascending triangle pattern. This bounce off the old resistance shows that buyers are entering the crypto, where it was previously being sold off. This hints that Avalanche is showing bullish strength and may be able to keep it up.
Bulls want to see the price continue to rise with higher lows, while bears are looking to see a price drop back below the $80 level and for this area to once again become resistance.
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