Avalanche appears to have broken out of a multi-month falling wedge, leading to bullish price predictions by a crypto analyst.
- AVAX surged 8.2% in the past week amidst strong bullish signals. Analysts predicted a potential rally, with price targets of $130 and $228 in the coming months.
Amid a general downturn in the global cryptocurrency market, Avalanche [AVAX] has managed to stand out, emerging as one of the top 20 largest cryptocurrencies by market capitalization seeing green performance.
Despite broader market declines, AVAX has seen a notable performance increase, with the asset rising by 8.2% over the past week.
This positive momentum extended into the past 24 hours as well, with the asset posting an additional 1.2% gain, currently trading at approximately $29.46 at the time of writing.
Next target for AVAX?
Amid AVAX’s green performance, renowned crypto analyst CryptoBullet took to X (formerly Twitter) recently to share his perspective on Avalanche’s current price movement.
According to the analyst, AVAX has broken out of a multi-month “Falling Wedge” pattern, a bullish technical signal in market analysis.
Falling wedges generally occur after a long downward trend, where the price consolidates and starts forming lower highs and lower lows, resembling a wedge shape.
Once the price breaks above the upper trendline of this wedge, it often signals the end of the bearish trend and the beginning of a new rally.
CryptoBullet commented on the recent breakout, stating,
“AVAX broke out of a multi-month Falling Wedge. I’m expecting a good rally in the next 3–6 months.”
He further shared ambitious price targets for the upcoming rally, predicting that Avalanche could rise to $130 and potentially even $228, depending on market conditions.
These price targets, although ambitious, reflect the growing optimism surrounding Avalanche as the crypto market looks for signs of recovery.
Assessing Avalanche’s Technicals
While technical analysis suggests a possible rally for AVAX, a deeper look into the asset’s fundamentals is necessary to gauge the likelihood of such a significant price increase.
One important metric to consider is the Relative Strength Index (RSI), which measures the momentum of an asset’s price movements.
The RSI oscillates between 0 and 100, with readings above 70 indicating overbought conditions and below 30 signaling oversold conditions.
Source: CryptoQuant
At press time, Avalanche’s RSI was at 58, according to data from CryptoQuant.
This showed that the asset was in a neutral condition—neither overbought nor oversold—which gives it room to move either upwards or downwards based on broader market factors.
In addition to the RSI, another crucial metric is Open Interest, which measures the total number of open futures contracts for an asset.
Data from Coinglass revealed that AVAX’s Open Interest had decreased by 2.33%, valued at $299.64 million at press time.
Source: Coinglass
However, this decline was offset by a significant 27% increase in AVAX’s Open Interest volume, which sat at $541.01 million.
This suggested growing participation in AVAX derivatives markets, a factor that could influence the asset’s price movement in the near term.
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