- The avalanche has increased by more than 7% in the past seven days.
- Despite the price increase, market sentiment around AVAX remained bearish.
Unlike most cryptos, Avalanche [AVAX] The bulls held firm as the token managed to maintain its price uptrend.
In fact, the price reached a critical level that could trigger a bull rally, causing the price to reverse Shiba Inu [SHIB] to become the 11th largest crypto.
Avalanche on the verge of an outbreak
According to CoinMarketCapAVAX’s price has risen more than 7% over the past seven days. In the last 24 hours alone, the value of the token has increased by more than 4%.
At the time of writing, Avalanche was trading at $37.09 with a market cap of over $14 billion, making it the 12th largest crypto.
Meanwhile, World Of Charts, a popular crypto analyst, recently posted a tweet This highlighted a falling wedge pattern that emerged on AVAX’s 4-hour chart.
The good news was that AVAX’s price was about to break above that pattern. If the token succeeds, investors can expect a massive bull rally.
The coming rally could also allow AVAX to flip SHIB, as the difference in their market cap was only $400 million. AMBCrypto’s analysis of Glassnode’s data found that SHIB has more concerns.
SHIB’s NVT ratio registered an increase, indicating a price decline. A drop in SHIB’s price could 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 open interest increased along with price.
This suggested that the bull rally could continue and allow AVAX to break out of the falling wedge. However, sentiment around AVAX remained bearish as weighted sentiment remained low.
Source: Santiment
The Chaikin Money Flow (CMF) supported the possibility of a breakout as it registered an upswing and moved further above the neutral line.
Moreover, the MACD also showed a bullish crossover, further indicating continued price appreciation.
Nevertheless, the Relative Strength Index (RSI) and the Money Flow Index (MFI) remained bearish as they moved sideways in recent days.
Read Avalanche of [AVAX] Price prediction 2024-25
Considering the best-case scenario where AVAX breaks out, the first possible target it should reach is $40.
A successful breakout above that level could push the token above $50 in the coming days, which could lead to AVAX flipping SHIB.
Source: TradingView