Unlike many other cryptocurrencies, Avalanche (AVAX) saw its bulls holding steady ground, maintaining an upward trend in its price.
In fact, AVAX reached a crucial level that could potentially trigger a bullish rally, positioning it to overtake Shiba Inu (SHIB) and claim the 11th position among cryptocurrencies by market capitalization.
Avalanche poised for a breakout
According to data from CoinMarketCap, AVAX’s price surged by more than 7% over the past seven days, with a notable increase of over 4% in the last 24 hours alone.
As of the time of writing, Avalanche was trading at $37.09, boasting a market capitalization of over $14 billion, securing its spot as the 12th largest cryptocurrency.
Meanwhile, World Of Charts, a prominent crypto analyst, recently shared a tweet highlighting a falling wedge pattern on AVAX’s 4-hour chart.
The encouraging news was that AVAX’s price appeared poised to break above this pattern. If successful, investors could anticipate a significant bullish rally.
Moreover, this impending rally might pave the way for AVAX to surpass SHIB, given the relatively small difference in their market capitalizations, standing at just $400 million. Analysis of Glassnode’s data by AMBCrypto revealed some concerns surrounding SHIB.
SHIB’s NVT ratio indicated a potential price decline, which, coupled with a breakout above the falling wedge pattern, could facilitate AVAX’s ascent over the meme coin.
Is an AVAX bullish rally imminent?
To assess the likelihood of AVAX maintaining its bullish trajectory, AMBCrypto conducted an analysis of its metrics. The findings indicated an increase in open interest alongside the price of AVAX.
This suggested a continuation of the bullish momentum, potentially leading to a breakout from the falling wedge pattern. However, sentiment towards AVAX remained relatively bearish, as evidenced by its low Weighted Sentiment.
On a positive note, the Chaikin Money Flow (CMF) displayed an uptick and was trending further above the neutral mark, supporting the possibility of a breakout.
Furthermore, the MACD exhibited a bullish crossover, providing further indication of a sustained uptrend in price.
Nevertheless, the Relative Strength Index (RSI) and the Money Flow Index (MFI) remained neutral, showing sideways movement in recent days.
