As a seasoned cryptocurrency analyst with years of market experience under my belt, I’ve seen my fair share of bearish corrections and bullish recoveries. The recent trend in the Avalanche price analysis has piqued my interest due to its significant potential for growth.
As a researcher studying the cryptocurrency market, I observed a lethargic trend unfold over the weekend. Most cryptocurrencies were making efforts to regain balance after the intense weekday rally. Bitcoin‘s price experienced a subtle 0.4% rise, while AVAX displayed a remarkable surge of 8%. This growth propelled AVAX to reach a five-week peak at $31.6.
Avalanche Price Analysis: TVL and Futures Interest Boost Investor Confidence
During the market upturn in July, the price of Avalanche coin experienced a correction and reached its lowest point at $21.8. Following this correction, the coin underwent a bullish reversal that increased its value by 45%, reaching $31.4. Consequently, the market capitalization of Avalanche surged to an impressive $12.4 billion.
It’s intriguing that the bearish market reversal occurred exactly at the 50% Fibonacci retracement point, signaling a necessary correction for investors to regain power and maintain the overall positive trend for the asset.
On Saturdays analysis, the price of Avalanche displayed a bullish surge past its resistance line in a falling wedge pattern. Theoretically, this indicates that the bearish pressure is lessening, paving the way for buyers to regain dominance. This chart configuration has been instrumental in shaping the recent two-month correction in Avalanche, implying a shift in market trends following the breakout.
Furthermore, the Total Value Locked (TVL) in Avalanche has shown a robust rebound, climbing from $689.5 million to $951.7 million—representing a 38% enhancement. This significant expansion indicates a surge in investor faith and heightened action within the Avalanche community.
At the same time, the Futures Open Interest on the Avalanche network underwent a significant jump, rising from $173.6 million to $254.1 million—a 46% growth. This substantial expansion signifies increased trader involvement and optimism in Solana’s futures market.
The upcoming week could show a minor pullback to breached resistance and validate its availability as potential support. If the wedge pattern breakout sustains, the AVAX price prediction hints at a potential rally to $41.8, followed by $65.4.
Technical indicators
- Exponential Moving Average: The coin price reclaiming the fast-moving 20D and 50D EMAs indicates an initial sign of trend reversal.
- Directional Movement Index: A positive crossover between the DI+ (blue) and DI-(orange) slope indicates buyers are strengthening their grip over this asset.
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2024-07-21 21:39