AVAX Price At A Pivotal Moment: Will It Trigger A Rally Beyond $40?

• AVAX price is consolidating around the Fib support zone of $32 and attempts for a breakout.
• Technical indicators and futures market data indicate a possible rebound ahead.

Over the past month, Avalanche (AVAX) has been in a downward momentum and witnessed underperformance on the chart. However, the recent price action has captured market attention as it was around its critical Fib support zone of $32.

It trades inside a falling wedge pattern and close to the lower trendline zone. The next move for AVAX remains uncertain as it has fallen below the 200 day EMA mark and replicates indecision among the market participants.

At press time, AVAX price was trading at $34.06, noting an intraday surge of over 2.30%. Its market cap soared to $14.02 Billion, ranked 12th among the overall crypto coins.

AVAX Forms Inverted Head and Shoulders Formation: Analys Highlights

A recent tweet by @RodMaartin on X highlighted that, AVAX crypto has formed an inverted head and shoulders pattern on the 3-day timeframe.

It has retested the neckline support zone around $32. Once it crosses above the trendline hurdle of the falling wedge pattern of $38, a sharp upward movement toward $70 can be anticipated  in the short term.

Further guidance was given by CYPHR through his recent post on X. According to the analyst, it was on the brink of its lower trendline support of the rising channel and a reversal could be anticipated.

Currently, for the buying side, the risk to reward ratio for buying AVAX was attractive and a possible rebound was on the horizon.

Moreover, the Relative Strength Index (RSI) flipped from the oversold trajectory and signals a possible reversal ahead.

Avalanche Crypto Sees Spike in Large Transactions

Data from IntotheBlock revealed that the large transactions showed a notable spike from 623 to 900 txs in the last two sessions.

This significant rise in large transactions indicates heightened activity among major investors or institutions, reflecting increased confidence in AVAX’s potential.

Large transactions are often associated with strategic accumulation or growing optimism among investors or traders.

This suggests that AVAX crypto is gaining market attention and could trigger a sharp upward rally in the coming sessions.

Avalanche’s Bullish Momentum Builds as Buying Pressure Gains Traction

Data from Coinglass shows that the Open Interest (OI) has risen over 3.20% to $683 Million in the past 24 hours. It highlights an increase in long interest from traders.

Moreover, as of the latest reading, the OI-weighted funding rate stands at 0.0092%, meaning that traders holding long positions are paying short positions to maintain price equilibrium.

Such a scenario underlined a bullish sentiment, as more traders are betting on price increases, which could push AVAX price higher.

If this buying pressure gains further traction, Avalanche crypto could see a breakout move beyond $40 and may visit the $50 mark in the coming sessions.

The immediate support zones for AVAX crypto were $30 and $27, whereas the upside hurdles were $40 and $45.

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.