The cryptocurrency market has experienced significant growth in recent days, with Bitcoin (BTC) and Ethereum (ETH) seeing substantial gains. This positive momentum is influencing the price action of various altcoins, including Avalanche (AVAX), which shows potential for further upward movement. 📈
A compelling argument for AVAX’s future bullishness lies in its technical structure. The cryptocurrency’s recent price action closely resembles a historical fractal pattern observed earlier.
On the daily chart, AVAX exhibits a remarkably similar pattern to its November 2024 setup. After forming a broad falling wedge, the token carved out a rounding bottom pattern and broke out, leading to a massive 82% rally towards the upper resistance of the wedge.
Fast forward to now, AVAX has rebounded from its support level within the wedge, forming another rounding bottom. This breakout and retest of its neckline at $27.42 led to a surge in price to $30.16, highlighting bullish potential.
What Next for Avalanche?
If this fractal replicates its past performance, AVAX might be poised for significant gains. Sustaining current momentum could propel the token towards the upper wedge resistance near $42.0 – a potential 39% upside from its current price.
Of course, fractals don’t guarantee future results. However, their recurring market behavior patterns often offer valuable insights into potential trends. If history repeats itself, early investors may benefit significantly.
Disclaimer: This article provides informational insights only and is not financial advice. Before making any investment decisions, always conduct thorough research.