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- After recently recovering from a key support level, AVAX is on track to break the descending trendline.
- This current uptrend could see AVAX reach as high as $40, fueled by increasing momentum.
Avalanche [AVAX] registered a 13.68% gain over the past month, and chart analysis indicated that the rally was likely to continue, further extending gains.
AMBCrypto provides detailed insights into why this rally is on the horizon.
Bullish outlook for AVAX
AVAX is currently trading within a bullish triangle pattern on the daily time frame, marked by an upper diagonal boundary and a basic support line.
Recently, AVAX broke above this upper limit and returned to the support level at $23.28, a move that was met with a positive market reaction.
If buying pressure continues at these levels, AVAX could target three key price points: $28, $33, and ultimately $40. Conversely, a drop in buying pressure could see the price drop to $20.45 and possibly even $17.29.
Source: trading view
This significant rebound and subsequent uptrend is a strong indication that AVAX could see higher prices in the coming trading sessions.
Retailers support market recovery
The Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicated strengthening market sentiment among traders.
The MACD has recently shown a Golden Cross, often a harbinger of a rally, with the MACD line now positively positioned at 0.23, indicating further price gains.
Source: TradingView
Moreover, the RSI, a momentum oscillator that rates the speed and magnitude of price movements on a scale of 0 to 100, has recovered from its neutral position at 50.
Such an upswing, which is now on an upward trend, indicates a positive market trajectory, indicating potential price appreciation in the coming trading sessions.
Market interest is increasing
According to Mint glass the inflow of money into the market has increased significantly, demonstrating the strength of the market.
Read Avalanche [AVAX] Price forecast 2024–2025
This increase is reflected in the Open Interest (OI), which tracks the total number of unsettled derivative contracts. THE OI witnessed an increase of 3.58% till the time of writing.
Source: Coinglass
Such increases typically lead to higher asset prices. If OI continues to rise, AVAX will likely head towards $40.