Avalanche (AVAX) Set for Breakout: Can It Surge to $60 in the Upcoming Rally? – Analyst

Avalanche (AVAX) is currently consolidating within a symmetrical triangle, a pattern often seen before significant price movements. Trading at $38.98, up 2.98% at press time, AVAX is showing signs of a potential rally as it builds momentum. With support from the 50-week moving average and an increasingly bullish sentiment, traders are keeping a close eye on whether the altcoin can surpass critical resistance levels and surge higher.

Bullish Pattern Indicates Potential Rally

The price action for AVAX reveals a strong upward potential, particularly due to its inverted head-and-shoulders pattern. This formation, with its head at $32.67 and shoulders on either side, signals significant bullish potential. The next key resistance lies at $43.50, followed by the critical $60 mark, which is a target for many bulls. The symmetrical triangle setup adds further credence to the possibility of a breakout.

AVAX pa analysis
Source: TradingView

However, it’s important to note that failing to hold above $43.50 could disrupt this bullish momentum, making this level crucial for traders to monitor closely.

Technical Indicators Point to a Rebound

Further reinforcing the bullish outlook, technical indicators support the possibility of a price breakout. The Stochastic RSI stands at 31.91, indicating oversold conditions, which suggests that a rebound could be imminent. Additionally, the narrowing of the Williams Alligator lines (35.31, 37.23, 38.71) indicates a consolidation phase. As these lines begin to diverge, a potential breakout could gain significant momentum.

AVAX technical indicators
Source: TradingView

Growing Market Interest Fuels Price Action

Market data reveals that AVAX is gaining increased attention from traders. Open Interest rose by 1.61% to $706.52 million, signaling heightened activity. Additionally, total liquidations amounted to $348.35K in long positions and $172.07K in shorts, reflecting increased volatility. This surge in trading volume indicates that traders are positioning themselves for a potential breakout.

Source: Coinglass

With strong technical indicators, market interest, and key resistance levels, Avalanche (AVAX) appears to be primed for a breakout. If it can successfully break and hold above $43.50, a rise toward $60 seems within reach. Traders should keep an eye on these crucial levels as AVAX prepares for its next major price move.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Also Read: Avalanche (AVAX) Price Faces Strong Resistance: Bearish Trend and Key Support Levels to Watch

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