Can Avalanche Price Recovery Hit $22 In the Coming Week?

Earlier today, the Avalanche coin price showcased an 8.05% gain and tested $22 local resistance. However, a sudden selling pressure in the crypto market reverted the price with a long rejection candle and plunged the altcoin to its current price of $18.91. Thus, a possible correction could offer a pullback opportunity for interested buyers.

Key points: 

The AVAX chart presents supply pressure at $20.
A possible correction could retest the breached resistance, such as $17.8 and $16.5
The intraday trading volume in the AVAX is $502.2 Million, indicating an 80% gain

Source- Tradingview

The Avalanche(AVAX) price witnessed a V-shaped recovery from the $14.5 support amid the recent recovery phase in the crypto market. Thus, altcoin registered a 36% growth within a fortnight and reached a high of $19.8.

The gradual growth in volume activity indicates the trader’s interest in long positions and the high possibility for further development. However, the long-wick rejection attached to the daily candle indicates the supply pressure from above.

Though this rejection suggests the profit booking from short-term traders, the AVAX price may witness a longer correction or consolidation if the selling pressure. Anyhow, the $17.8 to $16.5 support is suitable to trigger a post-correction rally. Thus, with sustained buying, the prices should rise 16.5% to hit the $22 mark.

On a contrary note, a breakdown below $16.5 will offset the bullish thesis and slump the price back to the $x mark.

Technical indicator

EMAs- during the prior downfall, the downsloping EMAs(20, 50, 100, and 200) acted as a significant dynamic resistance to plunge the price lower. However, the prices reclaimed these EMAs with the recent recovery, as they should flip into viable support.

RSI-  the daily-RSI slope climbing higher in bullish territory indicates growth in underlying bullishness.

Avalanche price intraday levels

Spot-$ 18.8
Trend- Bullish
Volatility- Medium
Resistance levels- $38.3 and $53
Support levels- $30 and $22