- AVAX, the token of Avalanche, is showing signs of a potential breakout from a falling wedge pattern.
- Despite a 7% increase in the past week, market sentiment remains bearish.
- The token’s price has reached a critical level that could trigger a bull rally, potentially surpassing Shiba Inu.
Explore the potential breakout of AVAX and its implications for the crypto market, including the possibility of surpassing Shiba Inu.
AVAX’s Potential Breakout
Avalanche’s token, AVAX, has been showing promising signs recently. Despite the overall bearish sentiment in the market, AVAX has managed to sustain its price uptrend. In the last seven days alone, the token’s price has risen by more than 7%. This price uptrend has brought AVAX to a critical level that could trigger a bull rally.
AVAX vs. Shiba Inu
As AVAX’s price continues to rise, it is inching closer to flipping Shiba Inu to become the 11th largest crypto. The difference in their market caps is just $400 million. If AVAX manages to break above the falling wedge pattern, it could trigger a massive bull rally, potentially allowing it to surpass Shiba Inu. However, the bearish sentiment around AVAX could pose a challenge to this potential breakout.
Market Analysis of AVAX
Analysis of AVAX’s metrics reveals that its open interest has been increasing along with its price. This suggests that the bull rally might continue, potentially allowing AVAX to break out of the falling wedge. The Chaikin Money Flow (CMF) and the MACD also support the possibility of a breakout, as they both show an uptick. However, the Relative Strength Index (RSI) and the Money Flow Index (MFI) remain bearish, indicating potential challenges ahead.
Conclusion
While AVAX is showing promising signs of a potential breakout, the overall bearish market sentiment poses a challenge. If AVAX manages to break out of the falling wedge pattern, it could trigger a bull rally that could potentially allow it to surpass Shiba Inu. However, the bearish sentiment around AVAX could hinder this potential breakout. Investors should keep a close eye on AVAX’s price movements and market sentiment in the coming days.
