- AVAX forms a bullish chart pattern.
- Token unlock looms, potential price impact.
- Gaming sector growth boosts Avalanche’s outlook.
Avalanche (AVAX) is on the edge of a major breakout. The leading cryptocurrency is forming a pattern called a “falling wedge” on the daily timeframe. This pattern indicates a potential price reversal from a downtrend to an uptrend.
As highlighted by an analyst, this bullish chart formation is marked by two converging trend lines, both sloping downwards, suggesting a potential reversal after a prolonged downtrend. At present, the price is testing the lower boundary of the wedge (support) which is a critical level to watch. If the price bounces off this support, it could propel AVAX to move upwards to test the upper boundary (resistance), marking a potential breakout.
However, the 100-day Moving Average (MA) is acting as an additional level of resistance, adding an extra layer of hurdle for the bulls. If the leading token manages to break out of the wedge, several price targets can be considered: $29.30, $33.00, $41.60, $50.00, and $59.30. These targets are based on technical analysis and historical price data.
AVAX Incoming Volatility Due To $200M Token Unlock
This analysis is for informational purposes only and should not be considered financial advice. Cryptocurrency investments are highly volatile, and past performance is not indicative of future results. It’s always imperative to conduct thorough research and consider consulting with a financial advisor before making investment decisions.
While the falling wedge pattern is bullish, investors should also consider market sentiment and risk factors. It’s important to note that approximately $200 million worth of AVAX tokens are scheduled to be unlocked in the next two days. While this event might not significantly impact the cryptocurrency’s $8.5 billion market capitalization, market experts warned that it could create volatility due to the current illiquid market conditions.
Nevertheless, short-term traders might consider this opportunity to take a short position, capitalizing on potential price fluctuations caused by the upcoming token unlock. Additionally, the Avalanche ecosystem is poised to become a gaming powerhouse, with a growing pipeline of exciting projects. This influx of gaming activity has led experts to label Avalanche as a strong investment candidate with significant potential returns.
