- Avalanche is up more than 7% in the last seven days.
- Despite the price rally, market sentiment around AVAX remained bearish.
Unlike most cryptocurrencies, avalanche [AVAX] The bulls held firm as the token managed to maintain its upward price trend.
In fact, its price reached a critical level that could trigger a bullish rally, allowing it to change Shiba Inu [SHIB] to become the eleventh largest cryptocurrency.
Avalanche on the verge of a leak
According CoinMarketCap, AVAX price had risen more than 7% in the last seven days. In the last 24 hours alone, the token’s value increased by more than 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 cryptocurrency.
Meanwhile, World Of Charts, a popular crypto analyst, recently published a https://twitter.com/WorldOfCharts1/status/1787013614374707400 highlighting a falling wedge pattern that emerged on the AVAX 4-hour chart.
The good news was that AVAX price was about to break out of that pattern. If the token manages to do so, investors can expect a massive bullish rally.
The next rally could also allow AVAX to switch to SHIB, as the difference in their market capitalizations was only $400 million. AMBCrypto’s analysis of Glassnode data revealed that SHIB has more concerns.
SHIB’s NVT index recorded an increase, indicating a price drop. A drop in SHIB price could help AVAX launch the meme coin if it breaks above the falling wedge.
Is an AVAX bullish 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 bullish rally could continue and allow AVAX to break out of the falling wedge. However, the sentiment around AVAX remained bearish as the weighted sentiment for it remained low.
The Chaikin Money Flow (CMF) supported the possibility of a breakout as it recorded a rally and headed further above the neutral mark.
In addition to that, the MACD also showed a bullish crossover, further suggesting a continued rise in prices.
However, the Relative Strength Index (RSI) and Money Flow Index (MFI) remained bearish as they moved sideways in recent days.
Read avalanche [AVAX] Price prediction 2024-25
Considering the best-case scenario of AVAX breaking out, the first possible target it should hit is $40.
A successful break above that level could allow the token to break above $50 in the coming days, which could result in AVAX flipping SHIB.
Next: Bitcoin sell-off falls but BTC stays at $60,000 – what’s next?
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