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Avalanche price eyes 30% jump in June with AVAX’s classic bullish reversal pattern


Avalanche (AVAX) exhibits indicators of constant its ongoing rebound transfer because it paints a basic bullish reversal sample.

AVAX value to $35?

Dubbed as “double backside,” the sample seems when the price establishes a support level, rebounds, corrects after discovering a resistance degree, pulls again towards the earlier help and bounces again towards the resistance degree to pursue a breakout.

Since May 27, AVAX’s price trends appear like those typically witnessed during the double bottom formation. Specifically, the AVAX/USD pair on the four-hour chart has bounced twice after testing the same support level near $22.25, and now eyes a breakout above its resistance level — also called “neckline” — near $27.50.

AVAX/USD four-hour price chart with “double bottom'”setup. Source: TradingView

If AVAX breaks above $27.50 decisively, and preferably in trading volumes, then the upside target would be at length equal to the maximum distance between the double bottom’s support and neckline levels.

That would put the Avalanche token en route toward $35, up 30% from Jun’s price.

Conflicting bearish scenario

Avalanche currently trades almost 82% below its record peak of around $151, established in November 2021. During its correction, the AVAX/USD pair formed multiple consolidation channels however broke out of them to prolong its downtrend additional, which might spoil the bullish situation outlined above. 

Zooming out to the every day timeframe, and AVAX has been consolidating inside an identical channel since Could 2022, fluctuating between falling trendline resistance and horizontal trendline help. When positioned collectively, these trendlines form a “descending triangle,” which traditional analysts consider a continuation pattern.

AVAX/USD daily price chart. Source: TradingView

Therefore, AVAX risks breaking out of the descending triangle in the coming days, with its bias skewed to the downside. Meanwhile, in a “perfect” scenario, the token will fall by as much as the descending triangle’s height, when measured from the breakout point.

Related: The crypto market dropped in May, but June has a silver lining

That places AVAX’s descending triangle close to $13.25, virtually 50% under June 6’s value.

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