Avalanche [AVAX] eyes $53 as bullish momentum builds – What now?

Avalanche [AVAX] has experienced a turbulent month, witnessing a decline of 27.97%. Nonetheless, a shift in sentiment could potentially lead to a significant market upswing. Over the last 24 hours, it recorded a modest 2.05% gain.

Investor sentiment is turning positive, supported by key indicators such as the emergence of a golden cross, which could bolster a possible market surge according to analysis by CryptoCrypto.

Strengthens in Bullish Pattern

Recent charts indicate the formation of a bullish structural pattern for AVAX, signaling a potential new high for the asset. This bullish triangle formation is characterized by a horizontal support line and a descending resistance line.

The initial bullish movement for AVAX commenced from the support level of $24.53 within the pattern. The price is anticipated to continue climbing, eventually breaking through the descending resistance line.

After breaching the resistance, two significant price targets are projected: a short-term target at $35.52 and a long-term target at $53.95, representing a potential rally of around 103% from its current level.

However, there is a possibility of price consolidation at current levels, oscillating within the support range of $22.87 to $24.53 before initiating a sustained upward trend.

Anticipating a Dip and Subsequent Surge

Technical indicators including the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) offer insights into potential price movements and trends.

At present, the RSI shows a bearish trend with a reading of 34.21, heading towards a support level at 32.07.

Therefore, there might be a temporary decline in AVAX until it reaches the support level, followed by a bounce-back leading to a price upsurge.

The bullish sentiment is backed by the golden cross formation, observed when the blue MACD line crosses above the orange signal line.

Currently, the MACD line stands at 3.03 with the signal line at 3.06 at the time of reporting.

The presence of the golden cross suggests the prevailing bullish structure remains intact, indicating that the declining RSI might just be a retracement.

Influx of AVAX Whales

Insights from IntoTheBlock reveal heightened purchasing activity by large investors in the AVAX market. Over the past 24 hours, a seven-day high of 569 large-volume transactions was recorded.

Whales, denoting significant holders of the asset, are actively accumulating AVAX, strengthening the indication of bullish sentiment when accompanied by price appreciation.

During this period, whales have traded a total of 10.77 million AVAX valued at $276.82 million. A sustained increase in trading volume alongside price increments in the upcoming sessions would signify continued accumulation by whales.