Avalanche (AVAX) - EW Market Analysis & Trading Plan
Avalanche (AVAX) has completed a green Wave 1 impulse followed by its corrective green Wave 2. This established a first bullish impulsive structure for this coin, which was stuck in a long corrective consolidation.
During this correction, AVAX retraced deeply into our Fibonacci zone:
- 61.8 percent retracement at 30.35 dollars
- 88.7 percent retracement at 15.13 dollars
From this zone, the coin was able to build a one-two structure in light blue and another one in dark blue. The upcoming five-wave sequence in dark blue will develop into the impulsive Wave 3 of the light-blue degree.
The light-green line marks the high of dark-blue Wave 1 and represents a key resistance level on the chart. Once broken, this level would unlock the potential for AVAX to accelerate into a next strong bullish impulse.
Trading Plan
If price rises above the light-green resistance, AVAX has a very high probability of advancing in the upcoming dark-blue Wave 3 toward our relative target zone:
- 161.8 percent Fibonacci extension at 39.53 dollars
- 261.8 percent Fibonacci extension at 51.22 dollars
A long entry remains possible within our Fibonacci target zone as long as price stays inside it.
Be patient and wait until we set up new target zones for possible long entrys.
