Avalanche has seen a significant increase of over 7% in the past week, despite the bearish market sentiment surrounding AVAX. Unlike many other cryptocurrencies, AVAX bulls are standing their ground, maintaining an upward trend in price. This has positioned AVAX to potentially overtake Shiba Inu and become the 11th largest cryptocurrency.
Recent analysis by CoinMarketCap shows that AVAX has experienced a 7% price surge in the last seven days, with a further 4% increase in the past 24 hours. Currently trading at $37.09 with a market capitalization exceeding $14 billion, AVAX sits as the 12th largest crypto.
The potential for a bullish breakout is on the horizon, as an emerging falling wedge pattern on AVAX’s 4-hour chart indicates a possible price surge. If AVAX successfully breaks above this pattern, a significant bull rally could be expected, possibly leading to the token surpassing SHIB in market cap.
Analytics from AMBCrypto suggest that AVAX’s metrics are aligning for a continued bullish trend, with indicators like the Chaikin Money Flow (CMF) and MACD signaling a potential breakout. However, the Relative Strength Index (RSI) and Money Flow Index (MFI) remain bearish, presenting a more cautious outlook.
In a best-case scenario, if AVAX breaks out successfully, it could target $40 initially and potentially soar beyond $50, potentially overtaking SHIB in the process.
Vocabulary List:
- Avalanche (noun): A sudden and significant increase.
- Bearish (adjective): Characterized by falling prices and a pessimistic market outlook.
- Cryptocurrencies (noun): Digital or virtual currencies that use cryptography for security.
- Bulls (noun): Investors who anticipate rising prices and are optimistic about the market.
- Market Capitalization (noun): The total market value of a cryptocurrency calculated by multiplying the current price by the circulating supply.
- Surge (verb/noun): A sudden and significant increase or rise.
