- Avalanche (AVAX) is gaining strength as the broader crypto market shifts from a downtrend to a recovery phase.
- Technical analysis suggests AVAX is in a coiling pattern, indicating a potential breakout after a period of consolidation.
- Despite low recent volume, AVAX maintains a bullish structure, hinting at growing demand and accumulation behind the scenes.
Avalanche (AVAX) is gaining momentum, and its price is going up as the overall crypto market shifts from a downturn to an upward trend after a long period of instability. The recent rise in Bitcoin’s price is helping other coins to bounce back, and AVAX is one of the altcoins benefiting from this recovery. Investors are returning, and trading volume is on the rise again. If the bullish move persists, AVAX may gain more in the coming days.
Currently, Avalanche is trading at $21.72, with a 24-hour trading volume of $406.72M and a market cap of $9.03B. The AVAX price increased 8.31% in the last 24 hours and 11.68% over the last week. This major movement foreshadows a continuation of this upward momentum throughout the coming days.
Source: CoinMarketcap
AVAX Price Builds Pressure for Major Move
However, the crypto analyst highlighted that while all attention gravitates towards Bitcoin’s (BTC) price action, Avalanche (AVAX) is prepping for what could be a major breakout. While trading volume has remained low recently, the AVAX price structure is still solid and maintaining a bullish structure.
This indicates that behind the price inactivity, strength and demand are emerging. The price action appearing now resembles a pattern referred to as coiling, in which the market builds up pressure in a tight range for a significant breakout.
This quiet AVAX consolidation is representing the best opportunity for altcoin watchers. With Bitcoin still having the main focus of the market, AVAX may have positioned itself for a breakout as its price action starts to align with the wider bull scenario. Should it play out as it has shown, AVAX could rapidly make gains as soon as the breakout occurs.
Chart analysis represents an important support range from which AVAX should bounce back, and if it breaks, there will likely be a last attempt for a rise before it rallies. Should AVAX hold this support and buying pressure pick up, the next critical resistance levels to watch are at $23.46 and $25.12.
Source: X
Not only because they sit near recent points of resistance, but also because they are the price zones that served as turning points in AVAX’s recent chart history. This could indicate that AVAX is ready for the next upward momentum, as the price compression and low trading volume most likely suggest a period of accumulation, not weakness in the market.
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