MEXCAvalanche Price Analysis Signals $40 Rally As Buyers Break 60-Day Correction
Highlights
- Amid a reversal from the 50% FIB level, the Avalanche price reached the key resistance of a falling wedge pattern, signaling the continuation of the prevailing uptrend.
- The rising AVAX price may face overhead supply pressure around $33 as it coincides with the 200D EMA.
- The intraday trading volume in Avalanche coin is $495 million, indicating a 105% gain.
The cryptocurrency market displayed a sluggish trend over the weekend, with most cryptocurrencies attempting to stabilize following the weekday rally. Bitcoin’s price saw a modest increase of 0.4%, while AVAX surged by 8%, reaching a five-week high of $31.6. The Avalanche price analysis indicated a significant rally, marking a breakout from a falling wedge pattern that represented a two-month correction.
Avalanche Price Analysis: TVL and Futures Interest Boost Investor Confidence
Amid the July market recovery, the Avalanche coin correction managed to bottom at the $21.8 price support. The bullish reversal boasted the altcoin value of 45% to trade at $31.4, while the market cap surged to $12.4 Billion.
Interestingly, the bearish pullback reverted precisely from the 50% Fibonacci retracement level indicating a healthy correction for buyers to replenish strength. This also indicates the broader trend for the asset remains bullish.
On Saturday, the Avalanche price analysis showcased a bullish breakout from the resistance trendline of a falling wedge pattern. In theory, the two converging trend lines indicate the bearish momentum is gradually diminishing, allowing buyers to retake control. This chart setup has carried the last two months’ correction in Avalanche and the breakout signals a change in market dynamics.
Additionally, the Total Value Locked (TVL) in Avalanche has experienced a strong recovery, increasing from $689.5 million to $951.7 million—a 38% rise. This substantial growth suggests a boost in investor confidence and heightened activity in the Avalanche ecosystem.
Simultaneously, the Futures Open Interest in the Avalanche network experienced a substantial rise, climbing from $173.6 million to $254.1 million—an increase of 46%. This notable growth indicates heightened trader engagement and a positive outlook in AVAX’s futures market.
The upcoming week could show a minor pullback to breached resistance and validate its availability as potential support. If the wedge pattern breakout sustains, the AVAX price prediction hints at a potential rally to $41.8, followed by $65.4.
Technical indicators
- Exponential Moving Average: The coin price reclaiming the fast-moving 20D and 50D EMAs indicates an initial sign of trend reversal.
- Directional Movement Index: A positive crossover between the DI+ (blue) and DI-(orange) slope indicates buyers are strengthening their grip over this asset.
Frequently Asked Questions (FAQs)
1. Why is TVL an important metric for evaluating a blockchain ecosystem
2. What does a rising open interest indicate about trader sentiment?
3. How is the Fibonacci retracement level used in technical analysis?
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