Avalanche (AVAX) shows signs of a potential bullish reversal after establishing a double bottom at a critical support level.
Double Bottom Formation at Key Support
AVAX is currently trading within a high time frame support region that historically served as a major pivot zone. Recent price action suggests the development of a double bottom structure — a bullish reversal pattern that may shift the prevailing bearish trend into a more optimistic trajectory.
Technical Aspects and Target Levels
Confirmation of the reversal signals may come with a volume influx following a breakout above the local high, which serves as the neck of the double bottom pattern. Achieving this level would position AVAX on a path toward a bullish market structure. The expected target is at approximately $41.80, aligning with the 0.618 Fibonacci retracement level.
Future Price Movement Expectations
If the double bottom holds and AVAX breaks above the local high with strong volume, the likelihood of a move towards $41.80 increases. Traders should monitor for decisive moves and confirmations via volume to validate the bullish breakout scenario.
The current market analysis indicates that AVAX is on the cusp of a potential bullish reversal. Upcoming resistance levels and trading volumes will be critical in shaping the long-term trend.
