Altcoin

Can Avalanche prices 2x after breaking THIS key pattern?

Avalanche broke above a bullish pattern, which could result in a two-fold price increase soon.

Published

5 months ago

July 23, 2024

Edited By: Ann Maria Shibu

AVAX’s price increased by more than 11% in the last 24 hours.
Most metrics looked bullish on the token.

Avalanche [AVAX] surprised investors recently as its price skyrocketed in the last 24 hours. Though this might look like a sudden surge, the latest data suggests that AVAX has been planning for this breakout for months.

Let’s have a look at how much the token can grow during this bull rally.

Avalanche’s latest bull rally

Avalanche bulls clearly took control of the market last week, as the token’s price surged by more than 19% in the last seven days. This got even better in the past 24 hours alone, as AVAX surged by a whopping 11%.

At the time of writing, AVAX was trading at $32.09 with a market capitalization of over $12.6 billion, making it the 11th largest crypto. Thanks to this, over 55% of Avalanche investors were in profit, as per IntoTheBlock’s data.

In the meantime, World of Charts, a popular crypto analyst, posted a tweet revealing that AVAX broke above a bullish pattern, which might have triggered the latest bull rally.

As per the tweet, Avalanche has been consolidating inside the pattern since March, only to break out a few days ago. If the data is to be believed, then this recent uptrend could result in a two-time price increase in the coming days.

Source: X

Is a 2x rally possible for Avalanche?

Since the aforementioned analysis suggested possible 2x growth, AMBCrypto planned to check the token’s on-chain data.

AVAX’s trading volume increased along with its price, acting as a foundation for the bull rally. Its social volume increased, reflecting a rise in AVAX’s popularity.

The token’s weighted sentiment also improved, which indicated that bullish sentiment around the token increased. Another bullish signal was the rise in development activity, as it meant that developers were making more efforts to improve the blockchain.

Source: Santiment

Our analysis of AVAX’s daily chart revealed that it was testing its support at $31.4. A successful rest could result in AVAX touching $41 again.

However, the Money Flow Index (MFI) was about to enter the overbought zone, which could increase selling pressure on the token. On top of that, the Chaikin Money Flow (CMF) also registered a downtick.

These indicators suggested that AVAX might soon lose its bullish momentum and fall victim to a price correction.