- Avalanche was up by more than 7% in the last seven days.
- Despite the price uptick, market sentiment around AVAX remained bearish.
Unlike most cryptos, Avalanche [AVAX] bulls were holding their ground as the token managed to sustain its price uptrend.
In fact, its price reached a critical level that could trigger a bull rally, allowing it to flip Shiba Inu [SHIB] to become the 11th largest crypto.
Avalanche on the verge of a breakout
According to CoinMarketCap, AVAX’s price had risen by more than 7% in the last seven days. In the last 24 hours alone, the token’s value surged by over 4%.
At the time of writing, Avalanche was trading at $37.09 with a market capitalization of over $14 billion, making it the 12th largest crypto.
Meanwhile, World Of Charts, a popular crypto analyst, recently posted a tweet highlighting a falling wedge pattern that emerged on AVAX’s 4-hour chart.
The good news was that AVAX’s price was just about to break above that pattern. If the token manages to do so, then investors can expect a massive bull rally.
The upcoming rally might also allow AVAX to flip SHIB, as the difference in their market caps was just $400 million. AMBCrypto’s analysis of Glassnode’s data revealed that SHIB has more concerns.
SHIB’s NVT ratio registered an uptick, indicating a price decline. A drop in SHIB’s price might help AVAX flip the meme coin if it breaks above the falling wedge.
Source: Glassnode
Is an AVAX bull rally inevitable?
To see the chances of AVAX remaining bullish, AMBCrypto analyzed its metrics. We found that its open interest increased along with its price.
This suggested that the bull rally might continue and allow AVAX to break out of the falling wedge. However, sentiment around AVAX remained bearish as its Weighted Sentiment remained low.
Source: Santiment
The Chaikin Money Flow (CMF) supported the possibility of a breakout as it registered an uptick and was headed further above the neutral mark.
On top of that, the MACD also displayed a bullish crossover, further hinting at a continued price uptick.
Nonetheless, the Relative Strength Index (RSI) and the Money Flow Index (MFI) remained bearish as they went sideways in the last few days.
Read Avalanche’s [AVAX] Price Prediction 2024-25
Considering the best-case scenario where AVAX breaks out, the first possible target it should hit is $40.
A successful breakout above that level could allow the token to go beyond $50 in the coming days, which might result in AVAX flipping SHIB.
Source: TradingView