- Once the neckline is challenged, the AVAX price may rebound over $80.
- The price is already testing the pattern’s neckline and may break shortly.
The crypto industry is heating up as more crypto assets go out of their comfort zones. Bitcoin price hovers around $63,000, with domination in a downward trend. Such cryptocurrencies like Ethereum, Polkadot, and Solana might demolish their highs. However, Avalanche (AVAX) and MakerDAO (MKR) are poised to make huge movements.
The asset fell from a high of $63 in the first half of 2021 to as low as $22. Multiple efforts to reverse the negative divergence failed, and the asset ultimately launched a massive parabolic surge over $60. Moreover, towards the start of the fourth quarter, AVAX pricing continued to rise.
However, despite the drop in trading volume, the price remained optimistic. As a result, the price has created an inverted head and shoulders pattern. Also, the price is already testing the pattern’s neckline and may break shortly.
Once the neckline is challenged, the AVAX price may rebound over $80 and then consolidate. The price is now trading along 0.78 FIB levels, with an immediate objective of $80. Also, the price might soon breach the next FIB levels of 1.272, which are created quite near to $100.
Considerable Chance of Retest
The MKR price has plummeted since the market turned negative in May. The price dropped from over $6000 to just $2000. The retest failed to push the price beyond $4000. Rather, it slid back to retest $2300 support. While many believed the MKR price had peaked, it bucked the downtrend to prove its survival.
The MakerDAO pricing has broken its downward trend since the May crisis. The asset breached the falling triangle and challenged immediate resistance at $3211. It was helped by two huge candles and the trading volume.
The asset may challenge key resistance levels around $4000. As a result, there is a considerable chance of a retest before breaking resistance. However, the asset might immediately recover positive momentum and rally above $4650.
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