Avalanche (AVAX) and dYdX (DYDX), two important altcoin projects in the cryptocurrency market, are at a remarkable point in terms of technical analysis. While both altcoins continue to move within the falling wedge formation, a significant change of direction is expected soon. According to experienced cryptocurrency analyst Captain Faibik, these formations usually result in upward breaks, which indicates a positive future for investors.
225 Percent Upside Scenario for Avalanche
AVAX has been trading within a falling wedge formation for the past few weeks. Such formations are generally considered to be an indication that a downtrend is nearing its end and a potential rally is imminent. AVAXâs current position is quite close to the formationâs lows. Captain Faibik expects the price to find strong support at the formationâs support trendline and make a bounce to the upside.
If the expected recovery scenario occurs and there is a breakout from the formation, the analyst expects AVAX to rise to $70 in the short term. This would indicate a gain of over 225 percent for the altcoin, which is currently trading at $21.37.
175 Percent Upside Scenario for dYdX
DYDX is also trading in a falling wedge formation similar to AVAX. Despite the fluctuations in recent weeks, DYDX has managed to stay within this formation.
At the current point where the formation is approaching its final stages, the analyst's expectation is for an upward breakout. If DYDX achieves this breakout, there may be a significant increase in its price. This could present a significant profit opportunity for investors.
According to Captain Faibik, DYDX expects the price to rise above $3.1 if the formation breaks the resistance trend line. This scenario would equate to an increase of over 175% for DYDX, which is trading at $1.09 at the time of writing.
