AVAX/USD 2h: just a few pips, but there's money on the table
The AVAX/USD pair exhibits promising signs of an upward trajectory on the 2-hour chart, marked by key technical indicators. Initially, a regular bullish divergence was spotted, a reliable harbinger of potential reversal. This divergence occurs when the price charts lower lows while the RSI (Relative Strength Index), an oscillator measuring the momentum and possible trend reversals, shows higher lows. This discrepancy signals weakening downward momentum, suggesting that buyers are gradually gaining ground.
Complementing this bullish signal, the MACD (Moving Average Convergence Divergence) indicator, a tool used to identify trend direction and momentum, crossed above its signal line prior to the divergence. Currently, the MACD and its signal line are advancing in parallel, reinforcing the bullish momentum.
With these technical indicators in alignment, the price has commenced its upward movement. The immediate profit target is set at the monthly pivot point of $51.51, serving as the next significant resistance level. Traders should monitor these levels closely, as a sustained move above could further validate the bullish outlook for AVAX/USD.
In conclusion, the convergence of bullish divergence and a favorable MACD configuration offers a compelling case for an impending uptrend. Investors should consider these technical signals in their trading strategy, keeping an eye on the pivotal $51.51 level for potential profit-taking opportunities.
Complementing this bullish signal, the MACD (Moving Average Convergence Divergence) indicator, a tool used to identify trend direction and momentum, crossed above its signal line prior to the divergence. Currently, the MACD and its signal line are advancing in parallel, reinforcing the bullish momentum.
With these technical indicators in alignment, the price has commenced its upward movement. The immediate profit target is set at the monthly pivot point of $51.51, serving as the next significant resistance level. Traders should monitor these levels closely, as a sustained move above could further validate the bullish outlook for AVAX/USD.
In conclusion, the convergence of bullish divergence and a favorable MACD configuration offers a compelling case for an impending uptrend. Investors should consider these technical signals in their trading strategy, keeping an eye on the pivotal $51.51 level for potential profit-taking opportunities.
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