- Avalanche (AVAX) has broken out of a falling wedge and is now trading in a bullish ascending triangle pattern.
- With strong support above $20, AVAX could rally toward the $35 resistance if momentum continues.
Avalanche (AVAX) is flashing major bullish signals, and market analysts are watching closely for a potential rally toward the $35 mark. With technical indicators aligning in the bulls’ favor, the altcoin may be on the verge of a decisive move upward.
Currently trading at $23.55, AVAX has maintained firm support above $20 since May 10. Despite a relatively modest 4.25% weekly gain, its recent price action suggests growing bullish momentum.
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Breakout from Falling Wedge Signals Reversal
On the weekly chart, AVAX has broken out of a falling wedge—a classic bullish reversal pattern. This structure had confined price action to a narrowing range, characterized by lower highs and lower lows. However, the recent breakout above the wedge’s upper resistance line suggests that bearish pressure has been decisively overcome.
Supporting this breakout, the Awesome Oscillator (AO) has begun to display green histogram bars. Although still in negative territory, this shift hints at growing bullish momentum and a potential trend reversal.
Ascending Triangle Points to Upside Potential
The bullish setup becomes even more compelling on the daily chart. AVAX is currently trading within an ascending triangle, a pattern typically seen during uptrends and often a precursor to a breakout.
The resistance line of the triangle sits near $25, while the rising trendline of higher lows continues to provide strong support. This price compression toward a breakout point, combined with an RSI that remains above the neutral zone, strengthens the bullish outlook.
If AVAX breaks past the $25 resistance, it could rally toward $30.45—near the key 0.618 Fibonacci retracement level. A successful move beyond that point could unlock the next target at $35, with potential to even test the $40 level in an extremely bullish scenario.
Downside Risk Remains
Despite the optimistic outlook, failure to break above resistance could invalidate the current bullish setup. A drop below the $20 support—or worse, a slide under $15—would be a major setback.
Still, with momentum building and multiple indicators turning positive, AVAX appears to be setting the stage for a bullish breakout that traders won’t want to miss.
