- AVAX’s daily chart turned green after a month of price declines.
- Several indicators suggested that a successful breakout above the falling wedge pattern was imminent.
After a month of double-digit price declines, Avalanche (AVAX) Finally managed to paint the daily chart green. The good news is that the token price is actually consolidating within the pattern, which has led to a price drop.
But this was just before a breakthrough that could spark a massive rally appeared.
Avalanche Bull Pattern
According to data from CoinMarketCap, AVAX’s price has fallen by more than 18% in the past month. However, the last 24 hours have been favorable for investors, with the token’s price up by more than 1%.
At the time of writing, AVAX had a market cap of over $10 billion and was the 13th largest cryptocurrency by price at $26.15.
AMBCrypto’s analysis of data from IntoTheBlock shows that long-term holders’ confidence in AVX is on the rise. This is because investors are expecting AVAX to pump as the number of addresses holding AVAX for over a year is increasing.
Source: IntoTheBlock
This may actually be the case, as a bullish pattern has emerged on the token chart.
Captain Faibik, a popular cryptocurrency analyst, recently wrote: Twitter It shows a bullish falling wedge pattern. The token’s price entered the pattern earlier this year and has been consolidating within the pattern since then.
At the time of writing, it appears that Avalanche is finally making a breakthrough. If that happens, investors could see a 200% rally. In fact, the price increase could push AVAX into the top 10 cryptocurrencies by market cap.
Source: X
Is a bullish rally possible?
AMBCrypto planned to take a closer look at Avalanche’s on-chain data to better understand it. According to Santiment’s analysis of the data, the weighted sentiment for AVAX remained in the negative territory.
This meant that bearish sentiment surrounding the token was dominant in the market. However, on July 14, the funding rate dropped.
Typically, prices tend to move in the opposite direction to the funding rate, suggesting that a bullish pattern may break out and prices may move higher.
Source: Santiment
Technical indicator MACD also showed a bullish lead in the market. In addition, AVAX’s Relative Strength Index (RSI) showed an upward trend, indicating that the token is more likely to start a bullish rally.
However, moving south, Chaykin Money Flow (CMF) showed that this was not the case.
Source: TradingView
Realistic or not, here it is. AVAX Market Cap in BTC
If the bulls start to rally, AVAX could first reach $27.9, as liquidations will start to rise from there. A break above that point could see Avalanche move to $30 this week.
However, if the downtrend is dominant, the token price could crash to $24.
Source: Hyblock Capital