AVAX Price Jumps 19% In A Sharp Bounce Back; Is Correction Over?

AVAX price is enjoying a relief rally following a massive sell-off. The recent price action advocates for an extension of the upside momentum owing to the overall market mood and the way technicals are aligned. The coin tested record lows with high trading volumes.

AVAX price surges 19% on Tuesday following the previous day’s carnage in the crypto market.
The price is expected to continue with gains amid an oversold momentum oscillator.
A double-bottom structure would lend support to the coin for a higher probability of gains.

AVAX price makes upside move

On the daily chart, the AVAX price remains pressured below the descending trend line from the highs of $104, it made on April 4. Since then, the price depreciated nearly 40% to the record lows of $40.0.  A fresh buying momentum would unleash recapture of the psychological $50.0 level followed by the horizontal resistance level at $60.

The oversold technical indicators suggest a U-turn although with limited price action. This so because the market is still not out of woods yet.

The relative strength index (RSI) stays below the average line with a neutral bias. An uptick in the indicator would strengthen the upside outlook for the coin. Currently, it reads at 32.

The volume oscillator is trading at the 25 levels, which instructs that the short-term volume trend is higher than the long-term volume trend.

On invalidation of the bullish hypothesis, the price would again drop back to the record lows. Further selling momentum would set the base for a fresh record low for ADA.

As of press time, AVAX/USD trades at $46.14, up 11.67% for the day. The 12th largest cryptocurrency by the market cap holds the 24-hour trading volume at $1,852,698,202, according to Coinmarketcap.