Avalanche (AVAX) : Is this the final dip before a major surge ?
Avalanche (AVAX) is exhibiting technical signals strikingly similar to its previous surge of over 560% in 2021. Could this be the final dip before a new rally?
A Bullish Past That Seems to Repeat Itself
Despite the widespread market drop in the crypto market, which has been severely affected by geopolitical tensions, Avalanche (AVAX) might present a golden opportunity. An in-depth analysis of the AVAX chart reveals a fascinating technical setup, reminiscent of the one that preceded its last rally.
In 2021, Avalanche went through a long period of bearish consolidation, forming a descending wedge pattern. This type of structure is often seen as a bullish reversal signal. After hitting a crucial support between $9.50 and $11.50 and bouncing off its 50-day moving average, AVAX then started a spectacular surge of over 560% in just a few weeks.
An Explosive Outlook for AVAX
Currently, the AVAX chart shows an extremely similar setup. It features a new descending wedge pattern, with price action just recovering on the key support zone between $14.50 and $16.50 – once again, not far from its 50-day moving average.
This striking similarity between the two situations anticipates an equally explosive bullish scenario. Although macroeconomic headwinds may delay or disrupt the timing, technical signals suggest that once momentum returns to the market, It could be one of the top-performing altcoins in the next uptrend wave.
While chart patterns don’t guarantee results, they often provide powerful clues. AVAX currently seems to be in a generational accumulation zone, just like in 2021 before its rapid rally. The descending wedge, the curved base, and the behavior around the 50-day moving average are all factors indicating a potential imminent take-off.
Gaston Cuny
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
This article is for informational purposes only and should not be considered as investment advice. Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
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