A well-known cryptocurrency analyst World of Chart has outlined possible movements for Avalanche (AVAX). Positive scenario for AVAX is predicted by the analyst, with the technical pattern called the “falling wedge” which may introduce a breakout, being an important sign.
World and Chart states that Avalanche has been following this falling wedge pattern, which happens to be a part and parcel of the candlestick chart analysis tool which signifies a big price move after the asset breaks out of the pattern to the upside. A falling wedge is identified by the diminishing price range between two converging trendlines, both sloping downwards. The pattern is typically interpreted by analysts as a bullish signal which indicates that an uptrend may occur following a period of decline.
Source: Chart by World of Charts
Avalanche Eyes Substantial Rally
The analyst points out that if Avalanche manages to break the upper trendline of the wedge, then there is the potential of a substantial upside continuation. The breakout would confirm the bullish pattern and could result in a powerful rally in the days after the breakout. The event has been fueling discussions among investors and traders who watch chart patterns and market signals.
Avalanche (AVAX) trading value reached $36.98, which is an increase by 2.73% over the previous day, and by 6.61% over the last week. On the other hand, this notable rise is also supported by an impressive 24-hour trading volume of $445,739,061, indicating a huge increase in market activities and investor interest in AVAX.
Source: TradingView
As such, investors are recommended to keep a close eye on Avalanche’s price action, as the pattern could lead to a new growth phase for the cryptocurrency. On the other hand, the analyst warns that bullish breakout potential could be high, but market situation as well as external factors could have an impact on the real outcome.
There is a buzz in the crypto community on platform X and other social media channels; as many are following the thoughts of World of Chart. The best approach is anything but to wait for miracle, but to treat any such forecast with moderate expectation fulfilling still that value of cryptocurrency market is completely unpredictable. In the coming days, we will have the answer if Avalanche would rally as predicted by World of Chart and possibly bring significant profits to the holders.