Avalanche (AVAX) is showing signs of a potential bullish reversal, according to a recent chart shared by CryptoBullet. The AVAX/USDT weekly chart indicates that the cryptocurrency is sitting at a key horizontal support level. This level has historically played a significant role in influencing price movements. Now, it may be setting the stage for a potential upward trajectory.
CryptoBullet, a well-known analyst, highlighted this critical support level in their recent post. The chart demonstrates AVAX’s interaction with this support, which has managed to hold up despite the recent downturn. More importantly, the chart features a Dragonfly Doji candle formation, which often signals a reversal in the market. In the context of AVAX, this pattern could suggest that the bearish trend might be coming to an end.
The Dragonfly Doji pattern is a key technical indicator. It forms when the open, high, and close prices are all near the low of the day. This specific formation on AVAX’s chart indicates strong buying pressure at the support level, which could push prices higher in the near term. Historically, such patterns have been reliable predictors of trend reversals, making this an exciting development for AVAX holders.
The analyst’s analysis goes beyond identifying support and the Dragonfly Doji. The analyst has also set ambitious price targets for AVAX. According to the post, the next potential targets for AVAX could be $130 and $230. These targets are significantly higher than the current price level, indicating a potential for substantial gains if the reversal materializes.
Avalanche and Chainlink Lead RWA Tokens by Market CapThe $130 target corresponds with a previous resistance level on AVAX’s chart. Breaking through this level would confirm the bullish reversal and potentially pave the way for the next target at $230. This latter target represents a more long-term projection, which would require a sustained rally and broader market support.
At press time, the price of AVAX is hovering around $21, with a market cap of $8.17 billion, positioning it as the 12th largest cryptocurrency by market cap. The 24-hour trading volume for AVAX is $190.74 million, which represents a significant 46.79% increase. This surge in trading volume may indicate growing interest from investors despite the recent price decline.
