- AVAX jumped 8.2% last week amid strong bullish signals.
- Analysts predicted a potential rebound, with price targets of $130 and $228 in the coming months.
Amid a general slowdown in the global cryptocurrency market, Avalanche (AVAX) managed to stand out, becoming one of the 20 largest cryptocurrencies by market capitalization and showing green performance.
Despite broader market declines, AVAX has seen a notable increase in performance, with the asset increasing 8.2% over the past week.
This positive momentum has also extended over the past 24 hours, with the asset posting a further 1.2% gain, currently trading at around $29.46 at the time of writing.
Next target for AVAX?
Amid AVAX’s green performance, renowned crypto analyst CryptoBullet recently took to X (formerly Twitter) to share his views on Avalanche’s current price action.
According to the analyst, AVAX has broken out of a multi-month “Falling Wedge” pattern, a bullish technical signal in market analysis.
Falling wedges usually occur after a long downtrend, during which the price consolidates and begins to form lower highs and lower lows, resembling a wedge shape.
Once price breaks above the upper trendline of this wedge, it often signals the end of the downtrend and the start of a new rally.
CryptoBullet commented on the recent breakout stating:
“AVAX has emerged from a fall of several months. I expect a good recovery in the next 3 to 6 months.
He further shared ambitious price targets for the upcoming rally, predicting that Avalanche could reach $130 and potentially even $228, depending on market conditions.
These price targets, while ambitious, reflect the growing optimism surrounding Avalanche as the crypto market looks for signs of recovery.
Evaluation of Avalanche technical characteristics
Although technical analysis suggests a possible rally for AVAX, a closer look at the asset’s fundamentals is necessary to assess the likelihood of such a significant price increase.
An important metric to consider is the Relative Strength Index (RSI), which measures the momentum of an asset’s price movements.
The RSI oscillates between 0 and 100, with readings above 70 indicating overbought conditions and below 30 signaling oversold conditions.
Source: CryptoQuant
At press time, Avalanche’s RSI was 58, according to data from CryptoQuant.
This showed that the asset was in a neutral state – neither overbought nor oversold – giving it room to move up or down depending on broader market factors.
Besides RSI, another crucial metric is Open Interest, which measures the total number of open futures contracts for an asset.
Data from Coinglass revealed that AVAX’s open interest decreased by 2.33%, valued at $299.64 million at press time.
Source: Coinglass
Read Avalanche (AVAX) Price Prediction 2024-2025
However, this decline was offset by a significant 27% increase in AVAX’s open interest volume, which amounted to $541.01 million.
This suggests growing participation in AVAX derivatives markets, a factor that could influence the asset’s price action in the near term.
