AVAX AT 100?This chart illustrates a trading setup for the AVAX/USDT pair on the weekly timeframe, suggesting a breakout from a long-term descending triangle pattern. The price action recently crossed above a key resistance trendline, indicating potential bullish momentum. The green and red zones represent the profit target (take-profit) and risk zone (stop-loss), respectively, reflecting a risk-to-reward ratio favoring the upside.
The green box, extending towards $99.01, marks the potential target area for this bullish trade, which aligns with a significant historical resistance level. The breakout above $45.44, confirmed by increasing price momentum, provides a strong entry signal for this trade. The stop-loss is positioned at $23.50, safeguarding against potential downside risks if the price re-enters the triangle pattern or fails to maintain the breakout.
This trade setup hinges on the hypothesis of a sustained breakout. It is crucial to monitor volume during this move, as strong volume confirms the breakout’s validity. If the price consolidates above $45.44 and forms higher lows, it would further validate the bullish bias.
On the macro level, this trade aligns with the larger trend reversal potential, where AVAX is transitioning from a prolonged downtrend into an accumulation phase. Traders need to remain cautious of macroeconomic conditions, crypto market sentiment, and external factors that might impact the trade.
Ultimately, this trade is a high-reward scenario based on the technical pattern and requires proper risk management to account for potential volatility inherent in cryptocurrency trading.
