Calculating the odds of AVAX’s next breakout on the charts

• AVAX saw some bullish momentum following its bounce from the wedge support line at $25
• On-chain key metrics, active addresses, and development activity underlined the likelihood of an upside breakout

Avalanche’s (AVAX) price, at press time, was consolidating within a falling wedge pattern – A key bullish reversal setup.

After bouncing off the psychological wedge support at $25, the altcoin started to accumulate bullish momentum. This precipitated a hike in buying pressure from long position takers, with the same showcased by a 16% hike in AVAX’s price since the bounce-off.

Source: TradingView

Bullish momentum in play

This uptick in buy pressure has been accumulating since the reversal, showing signs of strength among the long position takers. A falling wedge pattern typically indicates a price reversal on the long-term lens.

Simply put, the aforementioned pattern underlined the odds of a potential price breakout to the upside in the future.

AVAX’s key metrics

AMBCrypto’s analysis of key on-chain metrics backed up this bullish outlook. The most notable statistic was that active addresses spiked by 2.75%, bumping up the “in the money” addresses’ percentage to 49.42%.

This would, in turn, suggest that more holders are profitable at its prevailing price levels – A sign of positive market sentiment.

Source: IntoTheBlock

Another key metric, development activity, spiked by 4% in the last 24 hours.

Here, it’s worth noting that development activity often highlights the confidence of the developer community, which then spurs investor interest. Like the previous metric, this finding further sets up AVAX for a potential breakout on the charts. 

Source: Santiment

What to expect from AVAX?

In light of the growing bullish momentum and strong positivism from on-chain fundamentals, AVAX’s buying pressure is likely to push the price past the falling wedge pattern resistance level.

Once AVAX breaches the resistance price level, market participants should expect a significant move towards the $30-$35 range.