- AVAX formed a bullish pattern, with $43.50 and $60 as the key resistance levels.
- Market indicators showed strong momentum, supported by rising Open Interest and trader activity.
Avalanche [AVAX] is making waves as it consolidates within a symmetrical triangle, a classic bullish pattern that often precedes explosive moves. AVAX is trading at $38.98, up 2.98% at the time of writing, and is showing signs of a potential rally.
With strong support at the 50-week moving average and bullish sentiment gaining momentum, traders are closely watching for the next big move. The question remains: can AVAX surpass the key resistance levels and move higher?
Is AVAX Ready for a Price Breakout?
AVAX’s price action suggests that an upside breakout could be imminent due to the inverse head-and-shoulders pattern. This formation, with the head at $32.67 and shoulders on either side, indicates strong bullish potential.
Resistance at $43.50 is the next major barrier, followed by $60, a critical target for bulls. The symmetrical triangle structure also supports this bullish outlook.
However, the failure to hold above $43.50 could disrupt this momentum, making these levels critical for traders to keep an eye on.
Source: TradingView
What do technical indicators reveal?
Technical indicators provide additional evidence supporting the bullish case for AVAX. The Stochastic RSI is at 31.91, indicating oversold conditions and suggesting a recovery is underway.
Additionally, the Williams Alligator lines (35.31, 37.23, 38.71) are narrowing, indicating consolidation. As these lines begin to diverge, a breakout may gain momentum.
These indicators underline the importance of upcoming price movements, with both resistance and support levels playing a crucial role.
Source: TradingView
How market interest contributes to momentum
Market data highlights the growing interest in AVAX as Open Interest rose 1.61% to $706.52 million, reflecting increased trading activity. Additionally, total liquidations totaled $348.35K in long positions and $172.07K in shorts, demonstrating increased volatility.
This increased trading volume, along with rising open interest, suggests that traders are positioning themselves for significant price action. However, continued momentum will depend on whether buyers can maintain control at key levels.
Source: Coinglass
Read Avalanche [AVAX] Price forecast 2024–2025
Conclusion: Is AVAX ready for a rally?
AVAX looks poised for a breakout as it consolidates within a symmetrical triangle, supported by bullish price action and strong technical indicators. If the price can break and hold above USD 43.50, the path to USD 60 becomes more likely.
Therefore, with increasing market interest and technical alignment, AVAX could be preparing for its next big rally.