AVAX is accumulating bullish momentum, supported by rising on-chain metrics.
- AVAX saw some bullish momentum following its bounce from the wedge support line at $25 On-chain key metrics, active addresses, and development activity underlined the likelihood of an upside breakout
Avalanche’s (AVAX) price, at press time, was consolidating within a falling wedge pattern – A key bullish reversal setup.
After bouncing off the psychological wedge support at $25, the altcoin started to accumulate bullish momentum. This precipitated a hike in buying pressure from long position takers, with the same showcased by a 16% hike in AVAX’s price since the bounce-off.
Source: TradingView
Bullish momentum in play
This uptick in buy pressure has been accumulating since the reversal, showing signs of strength among the long position takers. A falling wedge pattern typically indicates a price reversal on the long-term lens.
Simply put, the aforementioned pattern underlined the odds of a potential price breakout to the upside in the future.
AVAX’s key metrics
AMBCrypto’s analysis of key on-chain metrics backed up this bullish outlook. The most notable statistic was that active addresses spiked by 2.75%, bumping up the “in the money” addresses’ percentage to 49.42%.
This would, in turn, suggest that more holders are profitable at its prevailing price levels – A sign of positive market sentiment.
Source: IntoTheBlock
Another key metric, development activity, spiked by 4% in the last 24 hours.
Here, it’s worth noting that development activity often highlights the confidence of the developer community, which then spurs investor interest. Like the previous metric, this finding further sets up AVAX for a potential breakout on the charts.
Source: Santiment
What to expect from AVAX?
In light of the growing bullish momentum and strong positivism from on-chain fundamentals, AVAX’s buying pressure is likely to push the price past the falling wedge pattern resistance level.
Once AVAX breaches the resistance price level, market participants should expect a significant move towards the $30-$35 range.
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