- Avalanches have increased by more than 7% over the past seven days.
- Despite the price rise, market sentiment surrounding AVAX remained bearish.
Unlike most cryptocurrencies, Avalanche (AVAX) The bulls held their ground as the token maintained its upward price trend.
In fact, the price reached a critical level that could trigger a rally, allowing for a reversal. Shiba Inu (SHIB) It becomes the 11th largest cryptocurrency.
An avalanche just before an explosion.
According to CoinMarketCap, the price of AVAX has risen by more than 7% over the past 7 days. In the last 24 hours alone, the value of the token has surged by more than 4%.
At the time of writing, Avalanche is trading at $37.09 with a market capitalization of over $14 billion, making it the 12th largest cryptocurrency.
Meanwhile, famous cryptocurrency analyst World Of Charts recently posted the following: Twitter We highlight the falling wedge pattern seen on the 4-hour chart of AVAX.
The good news was that AVAX’s price would soon break out of that pattern. If the token does so, investors can expect a massive rally.
Since the market capitalization difference was only $400 million, AVAX may overturn SHIB in the upcoming rally. AMBCrypto’s analysis of Glassnode’s data shows that SHIB is more of a concern.
SHIB’s NVT ratio showed an upward trend, indicating a downward trend in price. SHIB’s price decline could help flip the meme coin if AVAX breaks above the falling wedge.
Source: Glassnode
Is an AVAX bull market inevitable?
To determine the likelihood that AVAX will remain strong, AMBCrypto analyzed metrics. We find that open interest increases with price.
This suggested that the rally could continue and AVAX could break out of the falling wedge. However, sentiment towards AVAX remained bearish as Weighted Sentiment remains low.
Source: Santiment
Chaikin Money Flow (CMF) registered an upward trend and moved further above the neutral line, supporting the possibility of a breakout.
Additionally, the MACD also showed a bullish crossover, suggesting continued price gains.
Nevertheless, the Relative Strength Index (RSI) and Money Flow Index (MFI) have remained weak, moving sideways over the past few days.
read Avalanche (AVAX) Price Prediction 2024-25
Considering the best-case scenario where AVAX occurs, the first target it can reach is $40.
A successful break above that level could push the token above $50 in the next few days, which could lead AVAX to overturn SHIB.
Source: TradingView