Avalanche (AVAX) price bounced off previous resistance

Avalanche (AVAX) price has confirmed previous resistance as support and shows decisive bullish signals. It is expected to continue to increase in the near future.

Weekly outlook

Avalanche (AVAX) price has been moving lower since reaching a yearly high at $50, which is slightly below the key resistance zone at $55. The decline peaked with a low of $27.50 last week, triggering a breakdown from the previous resistance area at $30.
However, it turned out to be just a false breakout as AVAX price bounced off the 20-week EMA (blue arrow), reclaimed the $30 zone and created a bullish pin bar candle.
Additionally, the 20-week EMA often acts as support for a long-term uptrend so a bounce from it went a long way in confirming the long-term trend to the upside.
The weekly RSI is above 50 and rising again, supporting the possibility of continued growth. Therefore, AVAX price could rally 54.02% towards the key resistance at $55.


AVAX/USDT Weekly Chart | Source: TradingView

The bulls regain control

The daily chart shows that AVAX price has broken above a descending parallel channel that has been in place since the yearly high.
After the initial breakout, the price confirmed the channel's resistance line as support yesterday (blue arrow).
The daily RSI broke above the bearish divergence line and rose above the 50 level, showing that the bulls have regained control.
Therefore, AVAX price could rise to the nearest horizontal resistance area at $42 in the next few days.

AVAX/USDT Daily Chart | Source: TradingView

Conclude

The most likely outlook suggests that Avalanche (AVAX) price will continue to rise in the near term. The nearest target is found at $41 and above it to $55.
This bullish view will be invalidated when AVAX price closes the weekly candle below the 20-week EMA.