Avalanche (AVAX) is gaining attention in the cryptocurrency world and I have spotted a bullish pattern on its price chart that could push AVAX to $45 and beyond. Let’s take a look at whether this potential breakout could bring big gains to investors.
Bullish signal for AVAX
Avalanche (AVAX) is poised for a strong rally, with a “falling wedge” pattern spotted on AVAX’s price chart, which is often seen as a sign of a positive turnaround.
This pattern has been developing since March 2024, with the price of AVAX experiencing a series of lower highs and lower lows. However, recent price action has seen AVAX break above the upper line of the wedge, indicating a shift from a downtrend to an uptrend.
I believe that this breakout could result in a 183% increase in AVAX’s value to around $45.5. A comparison was made to AVAX’s strong performance in late 2023, when it achieved significant gains in similar market conditions. Based on this analysis, AVAX could be preparing for another rally.
Key support and resistance levels for AVAX
Currently, AVAX is trading around $28.25 with a key support at $26. This support level is crucial for AVAX’s next move. If the price holds above $26, it could trigger the expected price increase.
However, AVAX faces resistance at the 50-day and 100-day exponential moving averages (EMAs) at $29.52 and $32.69, respectively. If AVAX is able to break above these resistance points, it is likely to gain momentum for further growth. Holding the support level around $25.73 will also be important to prevent the price from falling further.
AVAX’s relative strength index (RSI) is currently at 43.38, just below the neutral 50 level. This suggests that the market is leaning bullish but is not yet in overbought conditions, which means there could be room for growth.
Avalanche's market influence grows
Avalanche has performed well over the past year, with a return of about 210%. At the same time, AVAX’s share of the entire cryptocurrency market has risen from 0.50% to 0.92%, with increasing demand compared to other cryptocurrencies.
These technical indicators point to a possible breakout and rising market interest, and there is a good chance that AVAX could reach the $45 mark in the coming days.
