The current price of Avalanche’s (AVAX) is currently consolidating within a descending wedge formation, which is a crucial pattern indicating a possible bullish reversal.
Following a rebound from the psychological support level at $25, the altcoin has been gaining bullish momentum. This surge in buying interest from long-term investors is evident from a 16% increase in AVAX’s price post-rebound.
Positive Momentum Building Up
The increasing buying pressure since the reversal signals strength among long-position holders. A descending wedge pattern typically signifies a potential price reversal over the long run.
In simple terms, this pattern suggests the likelihood of a breakout towards higher prices in the future.
Key Metrics of AVAX
Analysis of important on-chain metrics by CryptoCrypto supported this optimistic outlook. One significant observation was the rise in active addresses by 2.75%, leading to an increase in the percentage of addresses “in the money” to 49.42%.
This indicates a higher number of holders profiting at the current price levels, reflecting positive market sentiment.
Another crucial metric, development activity, saw a 4% uptick in the last 24 hours.
It is noteworthy that development activity often showcases the confidence of the developer community, which subsequently attracts investor attention. Similar to the previous metric, this uptrend further positions AVAX for a potential breakout in the charts.
Anticipated Performance of AVAX
Given the increasing bullish momentum and the favorable on-chain fundamentals, AVAX’s buying pressure is expected to surpass the resistance level created by the descending wedge pattern.
Once AVAX breaks past this resistance level, market participants can anticipate a substantial movement towards the price range of $30-$35.