- 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.
As a seasoned analyst with over two decades of experience in financial markets under my belt, I must admit that the recent performance of Avalanche [AVAX] has piqued my interest. In a market where most cryptocurrencies are grappling with downturns, AVAX’s 8.2% surge in the past week is nothing short of remarkable.
Despite a widespread slump in the worldwide cryptocurrency sector, Avalanche [AVAX] has been a notable exception, climbing up the ranks to become one of the top 20 largest cryptocurrencies by market value, while showing positive returns or “green” performance.
In contrast to the overall market drop, AVAX has experienced a significant boost in performance, climbing up by approximately 8.2% during the last seven days.
Over the last day, this positive trend continued, resulting in a further 1.2% increase in the asset’s value. At the moment of writing, it is being traded around $29.46.
Next target for AVAX?
In the midst of AVAX‘s impressive growth, well-known cryptocurrency analyst CryptoBullet recently expressed his views about Avalanche’s ongoing price trends on the platform that was formerly known as Twitter.
The analyst states that AVAX has moved beyond a “Falling Wedge” configuration that’s been lasting for several months, which is considered a positive technical indicator in market evaluation.
After a prolonged period of prices decreasing, a falling wedge typically emerges. During this phase, the price fluctuates but consistently forms lower peak prices (lower highs) and lower trough prices (lower lows), creating a pattern that resembles a wedge in shape.
When the cost surpasses the upper boundary of this wedge shape, it usually indicates that the downward trend has ended and a fresh uptrend or rally is about to start.
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.”
Additionally, he outlined optimistic pricing goals for the imminent surge, suggesting that Avalanche might reach as high as $130, and possibly soar up to $228 under favorable market circumstances.
The given targets for Avalanche’s price, despite being quite high, mirror the increasing enthusiasm towards Avalanche as the crypto market seeks indications of a potential rebound.
Assessing Avalanche’s Technicals
Considering the technical analysis indicates potential growth for AVAX, it’s crucial to examine its underlying fundamentals more closely to estimate the probability of a substantial price surge.
One important metric to consider is the Relative Strength Index (RSI), which measures the momentum of an asset’s price movements.
In simpler terms, the Relative Strength Index (RSI) fluctuates from a low of 0 to a high of 100. When it goes beyond 70, this suggests that the asset is being overbought, while readings below 30 point towards the asset being oversold.
At press time, Avalanche’s RSI was at 58, according to data from CryptoQuant.
The analysis demonstrated that the asset was neither excessively bought (overbought) nor excessively sold (oversold), leaving it with potential to rise or fall depending on overall market influences.
Besides the Relative Strength Index (RSI), Open Interest is another vital statistic worth considering. This figure represents the aggregate number of active, unfilled futures contracts for a specific asset.
According to data from Coinglass, the value of open positions for AVAX stood at approximately $299.64 million, representing a decrease of around 2.33% as of the current news update.
Read Avalanche’s [AVAX] Price Prediction 2024–2025
However, this decline was offset by a significant 27% increase in AVAX’s Open Interest volume, which sat at $541.01 million.
The increasing involvement in AVAX derivative markets might impact the asset’s short-term price fluctuations.
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2024-10-15 06:16