Examining if AVAX can rally to $40 and beyond

Having recently rebounded from a key support level, AVAX is on track to break through its descending trend line.
This current upward trend could see AVAX reach as high as $40, fueled by increasing momentum.

As a seasoned crypto investor with a knack for spotting promising trends, I find myself quite optimistic about Avalanche [AVAX]. Having witnessed its resilience and recovery from key support levels, I firmly believe that AVAX is on the verge of breaking through its descending trend line.

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Over the last month, the price of Avalanche (AVAX) surged by about 13.68%, and technical analysis suggests this upward trend could persist, potentially driving even more growth for the cryptocurrency.

AMBCrypto provides detailed insights into why this rally is on the horizon.

Bullish prospects for AVAX

At the moment, Avalanche (AVAX) is situated within a bullish triangular formation on the daily chart, with an upper horizontal trendline serving as resistance and a lower trendline providing support.

Lately, AVAX surpassed its upper limit and reverted to the backing point of $23.28, a shift which has been favorably received by the market.

If the current purchasing intensity continues, Avalanche (AVAX) may reach three significant price levels: $28, $33, and eventually $40. On the other hand, a decrease in buying activity could lead to a drop in price to approximately $20.45 and potentially lower still, down to around $17.29.

The noticeable rebound and subsequent climb suggest a robust signal that the price of AVAX might increase during the forthcoming trading periods.

Retailers support market rally

As a crypto investor, I’ve noticed a significant uptick in market sentiment based on the trends shown by the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI). These technical indicators suggest that traders are increasingly optimistic about the market.

In simpler terms, the MACD (Moving Average Convergence Divergence) indicator has just shown a “Golden Cross,” which is typically a sign of an upcoming market rise. At this moment, the MACD line stands at 0.23, indicating that it could potentially go up even more.

Moreover, the Relative Strength Index (RSI), which measures the rate and strength of price changes using a scale between 0 and 100, has bounced back from its balanced state of 50.

The current upward swing in this trend suggests a promising market direction, possibly leading to higher prices during future trading periods.

Market interest intensifies

Based on Coinglass’ findings, there’s been a substantial rise in funds flowing into the market, indicating its robustness.

Read Avalanche’s [AVAX] Price Prediction 2024–2025

The increase in activity is reflected in the Open Interest (OI), a measure that tallies outstanding derivative contracts yet to be settled. By the time of reporting, the Open Interest had risen by 3.58%.

Increases of this kind usually result in a rise of asset prices. Should Open Interest (OI) keep rising, it’s probable that Avalanche (AVAX) will move towards the $40 level.

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2024-09-18 06:15