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After a substantial spike, the price of Avalanche (AVAX) is currently correcting. The rising upward trend is anticipated to continue when the corrective is finished.
The AVAX price has fallen below a long-term declining resistance line since August 8, according to technical analysis from the daily time frame. Dec. 30 saw a low of $10.54 as a result of this.
Since then, the price has risen, and on January 10, it broke over the resistance line. The result was a peak of $18.97 on January 24.
But the price started to decline and made a bearish candlestick (red symbol). The decline confirmed resistance at the $18.36 level of the 0.382 Fib retracement. Additionally, it supported a bearish divergence that the daily RSI had begun to show.
These elements may cause a short-term retracement in the price of AVAX. In this instance, the 0.382 Fib retracement support level at $15.77 would be the next support region.
On the other hand, the 0.618 fib retracement resistance level might be reached by AVAX if the stock price breaks through the $18.36 area.
A rejection and fall are likely due to the bearish candlestick and bearish divergence.
A correction is possible, according to the six-hour price chart. The AVAX token appears to have finished an upward movement in five waves (black), the third of which was prolonged. In red, the sub-wave count is displayed. If the count is accurate, the AVAX price will first correct into the $14.81–$15.80 area, which represents the 0.382–0.5 Fib retracement support levels, before starting to move upward again.
The Avalanche price forecast for February is thus positive since it is anticipated that the rising trend will continue.
This bullish AVAX forecast would become worthless if prices fell below the $10.64 level that marked the start of the ascending trend. In this situation, the cost may decrease to an average cost of $9.50.
In conclusion, the price forecast for the Avalanche for February is optimistic. After a brief pullback, an increase to at least $23.17 is anticipated. On the other hand, a decline below $10.64 would render this bullish scenario incorrect and trigger a decline toward $9.50.
