Avalanche (AVAX) to Hit $170 after Breaking This Resistance
- Avalanche price still leads the gaming and metaverse token.
- The overhead resistance is the break-or-make area for Avalanche.
- AVAX’s failure to breakout will see massive drops.
Avalanche (AVAX) has resisted most of the downswings that gaming and metaverse tokens witnessed over the previous few weeks. Nevertheless, the altcoin might improve its performance by overpowering an immediate crucial resistance area.
Avalanche to Test Crucial FIB and Psychological Resistance
Avalanche trades up against a crucial resistance level around $120. The value area contains 61.8% FIB retracement and the 2021 Volume Profile’s high volume node. Meanwhile, the critical psychological level at $125 stands beyond this price zone. A decisive close past those regions might result in a considerable upswing.
If Avalanche closes beyond the $125 level, it will confirm a break past two crucial resistance zone and complete one among the lucrative entry strategy in Ichimoku Kinko Hyo. That is the Ideal Bullish Ichimoku Break. Keep in mind that this entry happens when an asset fulfills these conditions.
- The close is beyond the Cloud (past Senkou Span A & Senkou Span B.
- The close is beyond the Kijun-Sen and Tenkan-Sen.
- Tenkan-Sen is beyond Kijun-Sen. If Tenkan-Sen is under the Kijun-Sen, it has to point up as Kijun-Sen points down or remain flat.
- Future Senkou Span A maintains above the Future Senkou Span B. If the former is under the latter, Future Senkou Span A should point up as Future Span B points down or remain flat.
- Chikou Span stays above the open area and candles.
The last one presents the most critical condition (Chikou Span above open space candlesticks). That confirms the upswings behind this strategy since it clears all resistances for future upsurges. Meanwhile, the predicted profit target is 100% FIB expansion near $170.
Meanwhile, Avalanche has to keep its bullish outlook to attain its higher aims. Closing under the Cloud (approximately the $100 area) will see the AVAX on downtrends, invalidating the anticipated upward movements.
Nevertheless, AVAX seems ready to clear resistance in its way to higher price levels. The crypto will see healthy price actions as the gaming and metaverse sectors prosper. However, failure to breakout will leave Avalanche vulnerable to massive plunges.