KAVA, BAT, AVAX recover with a strong jump

Kava.io (KAVA) has moved up since it ricocheted off the support line of a descending parallel channel on May 23.

After initially deviating below this, the Basic Attention Token (BAT) regained the USD 0.65 support area.

Avalanche (AVAX) has likely completed a correction with a rebound from the USD 13.70 support area.

KAVA

Since April 6th, KAVA has been trading on a descending parallel channel. At the time, it hit an all-time high of $ 8.13. So far it has made two breakout attempts, both unsuccessful.

However, it has risen rapidly since bouncing off the channel’s support line on May 23 and is currently making another breakout attempt.

The rally was initiated by a significant bullish divergence in the MACD histogarm. In addition, the RSI has passed the 50 mark and the Stochastic oscillator has created a bullish cross (green symbols).

Therefore, a breakout across the canal is expected.

Daily KAVA / USD chart | Source: TradingView

The wave number indicates that KAVA is possibly trading within a 1-2 / 1-2 wave formation. When it does, that move is driving the price into double digits.

A decline above the May 23rd low at $ 2.30 invalidates that possibility.

Daily KAVA / USD chart | Source: TradingView

Highlights

• KAVA trades on a descending parallel channel.
• It is likely that wave 1-2 / 1-2 will complete.

BAT

The BAT has been falling since April 9th ​​when it peaked at $ 1.64. The decline continued through May 24th when it fell as low as $ 0.454.

While the initial low broke below the long-term support at $ 0.65, the area rebounded shortly thereafter and was confirmed as support (green icon).

Technical indicators provide some bullish signs, such as an impending bullish signal in the stochastic oscillator (green circle). However, you have yet to confirm a reversal in the uptrend.

However, a break above the April 23 low at USD 0.85 (red line) confirms that this is not a bearish impulse but a corrective structure.

BAT / USD daily chart | Source: TradingView

The wave count shows that the decline was a pullback that contained the fourth wave. The upside momentum is still in place as the May 23rd low barely surpassed Casino 1’s high of $ 0.44.

The potential target for the top of the entire move is $ 2 and is determined using the Fib projection on waves 1-3.

BAT / USD 3-day chart | Source: TradingView

Highlights

• BAT has reclaimed the support area of ​​$ 0.65.
• The fifth wave of bullish impulse may have started.

AVAX

AVAX has been down since February 10 when it hit an all-time high of $ 60.3.

Following the February 16 rally, AVAX hit a lower high on May 7 before moving back down. This resulted in a low of $ 12.08 on May 23. Since then, the token has been on the rise.

The low served to confirm the USD 13.70 area as support. The area previously acted as resistance and support for the 0.786 fib retracement level.

Additionally, the decline from the aforementioned all-time high looks like a completed ABC correction structure. Nevertheless, the technical indicators continue to decline. This is especially evident when the MACD is negative and the RSI is below 50.

A rebound in the USD 23 resistance area will confirm the correction is complete.

AVAX / USD daily chart | Source: TradingView

Highlights

• AVAX has emerged from the USD 13.70 support area.
• It is likely that an ABC correction structure has been completed.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

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