- Avalanche (AVAX) may rebound strongly after holding critical $14 support, potentially reaching $50 target soon.
- Daily active addresses surged by 500%, indicating significant network activity and growing investor interest.
- Technical analysis shows AVAX forming a falling wedge, signaling a likely bullish breakout ahead.
Avalanche (AVAX) is showing signs of potential short-term weakness but may be preparing for a healthy rebound. A whale has been spotted selling a substantial number of assets, which may have influenced market movement. Technical indicators point to a possible bullish reversal if key support levels hold.
At the time of writing, AVAX is trading at $19.35, with a 24-hour trading volume of $1.76 billion and a market capitalization of $8.25 billion. The token has seen a notable decline of 11.58% over the last 24 hours, reflecting increased market activity and selling pressure.
Avalanche Daily Addresses Surge
Crypto analyst, Milk Road, described that the number of daily active addresses was far from a perfect indicator, but it was still providing good directional information. Recent data confirms that the AVAX has seen its network congestion literally burst, with its daily active addresses jumping 500% in the previous few weeks.
Avalanche Sets Up Falling Wedge
On technicals, well-known crypto analyst CryptoPulse noted that Avalanche was in the process of bottoming out within a declining wedge pattern, which in itself confirms a potential break to the upside. From the technicals, the AVAX could dip lower yet to the $14 supporting line that matches the lower end of the falling wedge.
In the scenario this support holds up, rebound to healthy levels could see the price revamp to $30 or more. With continued momentum, a potential breakout to $50 or more could follow later in the year and amount to considerable upside to the crypto.
Investors will want to pay close attention to the $14 level of support, which could prove to be a very good launch point in the coming months for a new rally.
Also Read | Litecoin (LTC) Shows Stability, Preparing for Breakout Toward $112 Resistance
AVAX Community Shows Strong Confidence
Bullish sentiment of the community with an obvious direction, in which 85% of members have faith in the direction of the bull in the market. This high percentage signifies high optimism and bright profit-gain expectations.
At the same time, only 15% of the voters bear a bearish attitude with no tangible fear of future declines. On an overall scale, confidence in continued growth among the community translates to good faith in the market and investor optimism.
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