The latest analysis from the expert crypto analyst at World of Charts showcases a bullish outlook for AVAX (Avalanche) in the midterm. The analyst highlights a significant technical pattern, indicating that AVAX is poised for a substantial upward movement if a critical breakout is achieved.
The chart illustrates a descending wedge formation, a classic bullish reversal pattern, which AVAX has been trading within since the start of 2024. The descending wedge is characterized by two converging trendlines, sloping downward and indicating a decreasing range of price movement. This pattern typically precedes a bullish breakout, as the pressure within the narrowing price range builds up until a breakout occurs.
The analyst highlights that AVAX has just broken above the upper trendline of the descending wedge. This breakout suggests that the bearish phase might be coming to an end. The breakout is further supported by a modest increase in trading volume, which adds credibility to the move. The price has risen to approximately $28.22, marking a 3.97% increase.
Potential Bullish Wave for AVAX
The expert points out that this breakout could lead to a substantial bullish wave, potentially doubling AVAX’s price. The chart sets a target price of around $66, representing a significant 133% increase from the current level.
As of now, AVAX is trading near the 50-day EMA and is attempting to cross this level. If it successfully surpasses the 50-day EMA, the next target is the 100-day EMA at $32.30. A sustained break above these levels could lead to further upward momentum, potentially driving the price towards $40 in the coming days.
The Relative Strength Index (RSI) is currently at 53.14, indicating a neutral market, neither overbought nor oversold. The upward trend suggests increasing bullish momentum. If it continues to rise, it could support the price movement toward higher levels. Conversely, a decline in the RSI might signal weakening bullish momentum and a potential reversal.
Additionally, the MACD indicator points to bullish momentum for AVAX. The positive histogram and the MACD line positioned above the signal line indicate that the price may continue to rise in the near term.
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