TLDR
AVAX surged 8.2% in the past week, outperforming the broader crypto market
Analyst CryptoBullet predicts AVAX could reach $130 and potentially $228 in 3-6 months
AVAX broke out of a multi-month falling wedge pattern, signaling a potential bullish trend
AVAX’s RSI is at 58, indicating neutral market conditions
Open Interest for AVAX futures decreased 2.33% but volume increased 27%
Avalanche (AVAX), one of the top 20 cryptocurrencies by market capitalization, has shown remarkable resilience in the face of a broader cryptocurrency market downturn.
Over the past week, AVAX has surged 8.2%, with an additional 1.2% gain in the last 24 hours, bringing its current trading price to approximately $29.46.
This positive momentum has caught the attention of market analysts, particularly crypto analyst CryptoBullet, who recently shared insights on AVAX’s price movement.
According to CryptoBullet, AVAX has broken out of a multi-month “Falling Wedge” pattern, which is often considered a bullish signal in technical analysis.
Falling wedge patterns typically occur after extended downward trends, where the price forms lower highs and lower lows in a wedge-like shape.
A breakout above the upper trendline of this wedge often signals the end of a bearish trend and the potential beginning of a new rally.
$AVAX #AVAX broke out of a multi-month Falling Wedge
I’m expecting a good rally in the next 3-6 months
Target 1 – $130
Target 2 – $228 pic.twitter.com/oU7EJJrI77
— CryptoBullet (@CryptoBullet1) October 13, 2024
Based on this technical analysis, CryptoBullet expressed optimism about AVAX’s future performance, stating, “AVAX broke out of a multi-month Falling Wedge.
I’m expecting a good rally in the next 3–6 months.” The analyst went on to share ambitious price targets for the upcoming rally, suggesting that Avalanche could potentially reach $130 and even $228, depending on market conditions.
While these predictions are certainly optimistic, it’s important to consider other technical indicators to gauge the likelihood of such significant price increases.
One key metric is the Relative Strength Index (RSI), which measures the momentum of an asset’s price movements.
AVAX Price on CoinGecko
According to data from CryptoQuant, AVAX’s RSI currently stands at 58, indicating neutral market conditions. This neutral position suggests that AVAX has room for movement in either direction, depending on broader market factors.
Another important metric to consider 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%, with a current value of $299.64 million.
However, this decline was offset by a significant 27% increase in AVAX’s Open Interest volume, which reached $541.01 million.
This increase in volume suggests growing participation in AVAX derivatives markets, a factor that could influence the asset’s price movement in the near term.
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