With a possible breakout signal, Avalanche (AVAX) smart contracts platform is causing buzz in the crypto scene. Notable analyst World of Chart has found a positive technical pattern that can drive AVAX prices far higher in the next days.
Falling Wedge Pattern Hints At Upside
World of Chart brings out on AVAX’s price chart a “falling wedge” pattern. Usually forming in a consolidation phase, this trend forms with price activity limited between two convergent trendlines sloping downhill.
Forming Falling Wedge Incase Of Breakout Expecting Upside Continuation Successful Breakout Can Lead Massive Rally In Coming Days#Crypto #Avax pic.twitter.com/YJHJYarrSw
— World Of Charts (@WorldOfCharts1) May 5, 2024
The main feature of this trend is the declining price range inside the wedge, which implies a building of purchasing demand. Often read as a positive indication of a possible reversal of the downtrend and the beginning of a price surge, a breakout from the top trendline.
Avalanche Poised For Takeoff?
Based to World of Chart, AVAX may witness a notable increase should it be able to surpass the upper trendline of the declining wedge.
This climb following the breakout could cause a significant price rise, therefore confirming the optimistic development. The professional notes the prospect of notable momentum and an explosive upward surge.
Total crypto market cap currently at $2.3 trillion. Chart: TradingView
Particularly those who closely study technical analysis, the likelihood of an AVAX breakout has sparked debates and speculation among crypto investors and traders.
Investor Caution Advised Despite Bullish Outlook
World of Chart stresses the natural volatility and uncertainty of the bitcoin market even when there is great possibility for a bullish breakthrough. Price fluctuations can be greatly influenced by outside elements apart than technical analysis.
Technical Indicators Paint A Positive Picture
Apart from the declining wedge formation, other technical indicators seem to be supporting the positive story for AVAX. The recent over 16% price rise in one week points to possible investor mood change.
Additionally, the impressive surge in trading volume signifies heightened market activity and growing investor interest in AVAX.
Source: Coingecko
Eyes On The Prize: Will Avalanche Deliver?
The next days will be vital since everyone is staring at the price movement and any indication of a breakout. While a failed breakout would lower investor enthusiasm, a good breakout could result in major benefits for AVAX holders.
Featured image from Pexels, chart from TradingView