- AVAX price is attempting to break its 40-day downward-facing consolidation.
- A bounce off the $14.75 support level is likely to trigger a run-up to the $21.47 hurdle.
- A daily candlestick close below $14.75 will create a lower low and invalidate the bullish thesis for Avalanche.
AVAX price looks ready for a reversal as it consolidates above a stable support level. This upswing seems to have the backing of an indicator, adding more credence to the possibility of an upswing.
AVAX price to trigger a run-up
AVAX price has seen a string of five lower lows since May 12, denoting the constant sell pressure in the crypto ecosystem. This downtrend was a common theme across the cryptoverse as massive liquidation events took place among lending platforms and companies.
Regardless, AVAX price seems to be making the best out of the worst situation. The Relative Strength Index (RSI) indicator has formed higher lows since May 12, suggesting a bullish divergence setup.
This technical formation forecasts a bullish move for the underlying asset. Therefore, investors can expect AVAX price to rally 28% and tag the immediate resistance barrier at $21.47. This is likely where the upside is capped for the altcoin.
In case of a flip of this blockade into a support level, the chance of extending the rally to $27.89 increases. This move, in total, would constitute a 67% ascent from the current price.
AVAX/USDT 1-day chart
While things are looking up for AVAX price, a failure to muster the momentum to rally could indicate weakness among buyers. In such a case, if AVAX price produces a daily candlestick close below the $14.75 support level, it will create a lower low and invalidate the bullish thesis for Avalanche.
This development could see AVAX price slide towards the next support floor at $10.70.