Will Avalanche Crypto Hit $100 As ‘Cup and Handle’ Pattern Emerges

• Avalanche crypto eyes $50 breakout with bullish cup and handle formation.
• Analysts predict a potential rally toward $100 followed by 240 in the short term.

Avalanche (AVAX) crypto entered a cooling phase in the first week of January 2025 after delivering a significant upsurge of over 30% in the last two weeks of December 2024.

The weekly price chart reveals that it has been forming a cup and handle pattern. At press time, AVAX crypto price was trading at $37.45, noting a rise of over 1.32% in the past 24 hours. Its market cap soared to $15.38 Billion, ranked 11th among the top crypto coins.

A Deep Dive into the Cup and Handle Pattern

As can be seen from AVAX’s weekly chart, a cup and handle pattern kicked off on March 18th, 2024 and was on the brink of completion.

A recent tweet by @best analysts pointed out that Avalanche crypto was primed for an upside rally as a bullish cup and handle pattern was observed on its weekly chart.

The “cup” is an intermediate accumulation phase that is defined on the weekly chart by a rounded bottom. The ‘handle’ phase, a short term consolidation, frequently precedes a break out. The handle seems to be at the final stage, indicating a bullish breakout.

It also showcased higher volume over the past 24 hours and a rebound was exhibited. The pattern’s neckline was placed around the $50 mark, which if breaks a significant upsurge toward $100 followed by $240 can be seen in the upcoming sessions.

AVAX Price Prediction: Key Levels to Watch

Avalanche crypto has taken support around the 100 day EMA mark and ended the three day declining streak. It has showcased a cup and handle pattern and has potential for massive upside momentum in the coming sessions.

Until it held above the $30 support mark, significant accumulation could be seen which could pave the way to crack the pattern’s neckline of $50 in the coming days.

The Relative Strength Index (RSI) line dropped below the 50 threshold, but a positive divergence was observed on the weekly timeframe.

Meanwhile, the Money Flow Index (MFI) reading was at 51, which signifies significant capital inflows into the market.

Derivatives Data Reflects Bullishness

According to Coinglass, AVAX’s spot inflow/outflow data witnessed a significant outflow of over $38 Million in the last three sessions. This outflow refers to the withdrawal of assets from exchanges to wallets.

This highlights a potential buying opportunity, hinting at possible upward movement ahead. Moreover, the Open Interest (OI) has risen over 5.70%, reflecting long buildup activity in the past 24 hours.

In addition to the OI surge, Avalanche crypto has recorded a massive rise in daily transactions, crossing $400k in the last three days. This surge is bolstered by a Total Value Locked (TVL) of $1.33 Billion.

The OI-weighted funding rate remained positive at 0.0053% since December 25th, signaling steady demand for the long contracts.

The immediate support zones for AVAX price were $32 and $28, whereas the upside hurdles were $45 and $50.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.