This analysis examines the Avalanche (AVAX) price chart, specifically focusing on a technical pattern that suggests a possible bullish breakout.
Wyckoff Accumulation Schematic:
The chart appears to be exhibiting a Wyckoff accumulation schematic. This theory, developed by legendary trader Richard Wyckoff, suggests a price pattern that can precede a significant upward move. Here's a breakdown of the Wyckoff accumulation phases:
Spring: An initial downtrend that tests support levels and identifies strong buying interest.
Selling Climax: A sharp price drop that shakes out weak holders.
Accumulation Schematic: A trading range with relatively equal highs and lows, representing accumulation by informed buyers.
Markup: A sustained price increase as buying pressure overwhelms selling pressure.
Potential Breakout:
The current price action suggests AVAX might be nearing the end of the accumulation phase and on the verge of a breakout, or "jumping the creek" as some analysts refer to it based on the Wyckoff terminology. This breakout would ideally be accompanied by increased trading volume to confirm buying pressure.
Target Price:
Based on the Wyckoff accumulation theory, the target price for AVAX could be around $87 or higher. This target is projected by measuring the height of the accumulation range and adding it to the breakout point.
Wyckoff Accumulation Schematic:
The chart appears to be exhibiting a Wyckoff accumulation schematic. This theory, developed by legendary trader Richard Wyckoff, suggests a price pattern that can precede a significant upward move. Here's a breakdown of the Wyckoff accumulation phases:
Spring: An initial downtrend that tests support levels and identifies strong buying interest.
Selling Climax: A sharp price drop that shakes out weak holders.
Accumulation Schematic: A trading range with relatively equal highs and lows, representing accumulation by informed buyers.
Markup: A sustained price increase as buying pressure overwhelms selling pressure.
Potential Breakout:
The current price action suggests AVAX might be nearing the end of the accumulation phase and on the verge of a breakout, or "jumping the creek" as some analysts refer to it based on the Wyckoff terminology. This breakout would ideally be accompanied by increased trading volume to confirm buying pressure.
Target Price:
Based on the Wyckoff accumulation theory, the target price for AVAX could be around $87 or higher. This target is projected by measuring the height of the accumulation range and adding it to the breakout point.
Trade active
Note
Avax back tested the breakout change of character area. $49.94 should hold maybe a wick to $47 but should not close under this price.Note
I expect a rip to the equilibrium area in the near future. Stop loss $44Trade closed: stop reached
Note
Note
After being wicked out I’m still interested in Avax for so called upcoming alt bull run. Getting stopped out hurt but I have to stick to a plan. Bought Avax under $20 so was well in profit.
USDT: 0xd3787d843Cf915E5475119459B34b6429827c297
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
USDT: 0xd3787d843Cf915E5475119459B34b6429827c297
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.