Price Analysis

Avalanche (AVAX) & Polkadot (DOT) Initiate a Recovery, Hoping to Rise by 40% in July 2024

The crypto markets are showing some signs of closing the crucial month on a positive note, as most of the tokens have been painted green. With the increased demand for primitive tokens, liquidity appears to be returning to larger tokens. Hence, Avalanche (AVAX) & Polkadot (DOT) prices have surged heavily by over 8% since the early trading hours. Will the prices make it above their respective resistances in the coming month?

Avalanche price is triggering a huge upswing after a rebound from the yearly lows close to $23, which attracted notable liquidity. The price attempts to re-enter the critical resistance zone that it lost earlier when it provided a solid foundation for a rebound. If the price successfully clears these levels, the AVAX price is believed to initiate a 40% upswing with a steep rise in positive market sentiments. 

The AVAX price traded within a descending parallel channel after the rejection it faced after surging above $60. Although the price has attempted to rebound after reaching the local lows, the current rebound may change the trajectory of the rally.  The RSI has formed a similar pattern, which suggests the price may remain consolidated for a while, as it did in April-May, followed by a breakout. Besides, the DMI seems to be preparing for a bullish breakout, which validates the possibility of an extended accumulation. 

Therefore, the current rebound is important as the bulls are getting back into action after remaining passive for more than a month. Hence, AVAX’s price is expected to clear the resistance zone and conquer the levels above $30 in the first few days of Q3 2024. On the other hand, the Polkadot, which has lost its glory after the emergence of primitive tokens, is believed to revamp a healthy upswing and get closer to the top 10. 

The recent bearish activity had compelled the price to lose the support of the decisive symmetric triangle. The recent flip seems to be part of an attempt to regain the levels and hence a bullish close for the week may pave the way for a strong bullish spell ahead. However, the bulls are regaining strength, as seen in the bull-bear power. Therefore, the DOT price is required to rise and reach the supertrend. A surpass above the levels may begin a fresh bullish spell, leading to a notable rise to the upper resistance zone between $7.27 and $7.43. 

The bears appear to have capitulated in these zones and hence a clear passthrough from these levels may begin a fresh rise towards the double-digit target. 

SOURCE

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