Will Avalanche join the top 10 crypto club with a 200% increase?

• AVAX’s daily chart turned green after a month-long price decline.
• Some metrics indicated a successful breakout above the falling wedge pattern.

After a month of double-digit price declines Avalanche (AVAX) finally managed to turn its daily chart green. The better news was that the token’s price was actually consolidating within a pattern, which caused the price drop.

However, it was on the verge of a breakout that could trigger a massive rally.

The Avalanche Bull Pattern

Data from CoinMarketCap showed that AVAX price has fallen by more than 18% in the past month. However, the last 24 hours have been in investors’ favor as the token’s price increased by over 1%.

At the time of writing, AVAX was trading at $26.15 and had a market cap of over $10 billion, making it the 13th largest cryptocurrency.

AMBCrypto’s analysis of IntoTheBlock data revealed that long-term holders’ confidence in AVX was increasing. This was the case as the number of addresses that had held AVAX for over a year increased, suggesting that investors were anticipating AVAX to rise.

Source: IntoTheBlock

This could actually be true as a bullish pattern appeared on the token’s chart.

Captain Faibik, a popular crypto analyst, recently published a tweet This shows a bullish falling wedge pattern. The price of the token entered the pattern earlier this year and has been consolidating within it since then.

At press time, it seemed like Avalanche was finally ready for a breakout. If that happens, investors could see a 200% surge. In fact, the price surge could also earn AVAX a spot in the top 10 list of cryptocurrencies by market cap.

Source: X

Is a bull rally possible?

AMBCrypto then planned to take a closer look at Avalanche’s on-chain data to better understand this. According to our analysis of Santiment’s data, AVAX’s weighted sentiment remained in the negative territory.

This meant that the pessimistic sentiment around the token prevailed in the market. However, its funding rate recorded a decline on July 14.

In general, prices tend to move in the opposite direction of the funding rate, indicating a price increase that could lead to a breakout above the bullish pattern.

Source: Santiment

The technical indicator MACD also showed a bullish upper hand in the market. Moreover, AVAX’s Relative Strength Index (RSI) recorded an uptrend, further suggesting that the token is likely to start a bull rally.

However, the Chaikin Money Flow (CMF), which moved south, indicated the opposite.

Source: TradingView

Realistic or not, here is AVAX market cap in BTC terms

If the bulls start a rally, AVAX could initially reach $27.9 as liquidation would increase at this level. A breakout above this could push Avalanche to $30 this week.

However, if the bears dominate, the price of the token could drop to $24.

Source: Hyblock Capital