Investors in Avalanche (AVAX) are closely watching the recent surge in its price, with the cryptocurrency seeing an increase of over 7% in the last seven days. Despite this positive momentum, market sentiment around AVAX remains bearish, according to analysts.
Unlike many other digital currencies, AVAX bulls have managed to maintain their position, with the token staying on an upward trend. There are indications that AVAX could potentially undergo a bull rally, which could see it overtake Shiba Inu (SHIB) to become the 11th largest cryptocurrency in terms of market capitalization.
A recent report from CoinMarketCap revealed that AVAX’s price has risen by more than 7% in the past week, with a 4% surge in just the last 24 hours. As of the latest data, AVAX is trading at $37.09 with a market cap exceeding $14 billion, solidifying its position as the 12th largest digital asset.
Technical analysis from World Of Charts highlights a falling wedge pattern on AVAX’s 4-hour chart, suggesting a possible breakout in the near future. The price is on the verge of surpassing this pattern, which could trigger a significant bull rally for investors.
Analysts are closely monitoring key indicators like the Chaikin Money Flow (CMF) and Moving Average Convergence Divergence (MACD), both of which are showing bullish signals. However, the Relative Strength Index (RSI) and Money Flow Index (MFI) are currently sideways, indicating some bearish sentiment remaining.
Despite the positive outlook, sentiment around AVAX remains mixed as its Weighted Sentiment is still low. However, if AVAX manages to break out of its current pattern, it could see a potential price target of $40 in the short-term, with a possibility of surpassing $50 and flipping SHIB in the coming days.
Overall, investors are keeping a close eye on AVAX as it shows signs of a potential breakout and bullish rally in the near future. Analysts are optimistic about the cryptocurrency’s performance, but caution that market sentiment remains a key factor to watch moving forward.