AVAX Price Prediction for January: A Retest of $15.20 Is Coming

avalanche (AVAX) price has been in an uptrend since bouncing above the support line of the bullish pattern on 30th December. A breakout out of this is the most likely forecast.

AVAX price has declined since hitting a high of $30.89 on Aug 8, 2021. The decline resulted in a minimum price of $10.54 on 30 December. AVAX has been in an upward trend ever since.

During the decline, AVAX declined below the horizontal support area at $15.20. Prior to this, the area provided support twice (green icon) before turning to resistance on November 10.

Despite the downward movement, technical indicators provide bullish signals that bode well for future price action. the Daily RSI Has generated bullish divergence for about two months (green line).

Besides, the RSI has just broken above a descending resistance line and moved above near 50. These are considered a bullish trend signal and support a move towards $15.20.

Nevertheless, the avalanche price forecast cannot be considered bullish unless the price moves above the $15.20 resistance area.

Avalanche (AVAX) Price Prediction for January
AVAX/USDT Daily Chart. source: trading view

AVAX Price Prediction for January: A Retest of $15.20 Is Coming

Short-term technical analysis on the six-hour time frame also supports a move towards $15.20 for AVAX. This is mainly because the AVAX price is trading within a descending wedge, which is considered a bullish pattern. The current upward movement started after the price of Avalanche bounced off the support line (green line).

If there is a breakout from the wedge, it will support the continuation of the upward movement in the AVAX price prediction for January.

The top of the wedge and the 0.5 Fib retracement resistance level is at $15.60. It forms a set of resistance levels at the average price between $15.20-$15.60.

On the other hand, a drop below the December 30 low of $10.54 (red line) would invalidate this bullish AVAX price analysis and warn of new lows.

avax price spike
AVAX/USDT six hour chart. source:trading view

To conclude, the future most likely for AVAX is a breakout from the wedge and retest of the resistance at $15.20-$15.60. The future momentum is unclear once the AVAX price is achieved.

On the other hand, a drop below $10.56 will invalidate this bullish hypothesis.

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