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Avalanche analysis – the price is at key resistance. Did we find the bottom of the correction?

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Avalanche has reached level with his token key resistance. This resistance consists of a maximum correction structure and there is also a previous short-term maximum. The price will manage to exceed this level, or it will continue to fall within correction structure which lasts from ATH?

Volumes have increased since the last long-term low, which is bull signal. It is possible that the price has found the bottom of the correction at the previous minimum, but we have not confirmed it. The market price is at the level of the previous maximum and has a problem overcoming it so far. However, this maximum is the same as resistance of maximum correction.

Avalanche on key resistanceAvalanche on key resistance. Source: TradingView

Avalanche is on key resistance

Therefore, if the price will respect resistance about $ 73.50, it is possible that the maximum will be re-created here and the price will continue to fall. On the other hand, if the price succeeds, another bull target is at the level of the previous support $ 79.00. In this case, we will monitor as well point of control at $ 89.00.

After reaching the bull target, you need to count on that price again will fall a the primary upward trend may not occur immediately after breaking the resistance. In addition, it will depend on the entire market, whether it has found a bottom or not. After break of the resistance, the accumulation zone may calmly occur instead of a growing trend.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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