- Avalanche (AVAX) surged over 15% this week, despite a broader market dip.
- A potential double bottom pattern suggests a mid-term trend reversal.
- Analysts set the next bullish target at $71, pending confirmation of support.
Avalanche (AVAX) maintained its bullish form throughout the week, defying an overall downtrend in the cryptocurrency sector. Even though it saw a modest 4% decrease over the past 24 hours, weekly action remained upbeat as AVAX rose 15.63% over seven days.
This surge was realized in spite of tapering volumes, a sign of temporary indecision but still interest in the longer-term outlook of the asset.
At present, AVAX is trading at $20.78. The asset’s 24-hour trading volume declined to $538.29 million, down 11.36%, with market capitalization remaining stable at $8.77 billion.
With this latest dip, Avalanche’s configuration is such that bullish momentum is set to return if the token can sustain a price above a prime support zone of $20.50.
Also Read: Avalanche (AVAX) Price Prediction: Support Holds, Targets $47.94 Upside
AVAX Chart Signals Bullish Breakout Setup Ahead
The week’s price chart clearly shows a trend change at the week’s commencement. AVAX gapped across the $20 ceiling, with a temporary consolidation at $20.80-$21.60. The lateral movement was profit-taking, indicative, but maintained a bullish undertone.
Later, a breakout failure at $22 triggered a price retracement below $21. However, the chart maintains a positive structure unless the price breaks support. Analysts have identified a double bottom formation at $20.69, a classic bullish reversal sign.
It is in combination with a current breakout of a downtrend resistance line, suggesting a move toward new buying pressure. Success of this reversal formation will be dependent on sustained support as well as confirmation with volume.
Upside Targets Signal Strong Mid-Term Potential
Technically, AVAX may be in a position to reclaim higher levels. Our first target is $71, a 243% potential profit at current levels. A $108 second target is in view as well, but this is only with additional strength and general market activity.
Previous chart patterns, such as the May cup and handle formation, further support this positive outlook. Despite near-term volatility as well as external market risks, Avalanche’s future is bright.
As long as such essential levels of support hold good along with buying interest returning, AVAX can once again head peers in the mid-term perspective.
Also Read: Avalanche (AVAX) Poised for Breakout After Forming Double Bottom Pattern
Disclaimer: This article is based on real-time market data and general technical observations. It does not constitute financial advice. Always conduct your own research before making investment decisions.
