Key Highlights
- AVAX is trading within a falling wedge pattern, signaling a potential bullish reversal if resistance is broken.
- Daily active addresses have surged to 51,000, indicating growing network activity despite recent price declines.
- A breakout above $24–$25 could confirm bullish momentum, with targets at $30+ if sustained.
AVAX Price Analysis: Falling Wedge Points to Bullish Reversal
AVAX has been following a downtrend, forming lower highs and lows in a descending wedge—a classic bullish reversal pattern. Currently, AVAX is testing the wedge’s lower boundary near $21.50–$22.00. A breakout above the $24–$25 resistance zone would validate the pattern, potentially pushing prices toward $30 or higher based on the wedge’s height projection.
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Market analyst MarzellCrypto notes:
"AVAX aligns with Fibonacci retracement levels, suggesting a bullish reversal on the weekly chart. Holding support could spark a recovery targeting $43.84, $58.06, and $80.03 mid-term."
Daily Active Addresses Reflect Strengthening Network Activity
Despite AVAX’s price slump, daily active addresses have risen to 51,000, highlighting increased user engagement. Historical trends suggest that past spikes in active addresses didn’t immediately drive price rallies—requiring additional confirmation.
Key takeaways:
- Rising addresses signal long-term holder accumulation.
- Network participation often precedes price recoveries.
Technical Indicators and Critical Resistance Levels
- RSI (41.60): Exiting oversold territory; a move above 50 could ignite buying momentum.
- MACD: Early signs of a bullish crossover.
- Cumulative Volume Delta (-19.9K): Selling pressure dominates, but a reversal may indicate accumulation.
For a confirmed bullish breakout:
- AVAX must hold $21.50 support.
- Break $24–$25 resistance to target $30+.
- Watch Open Interest (OI), up 6.43% to $218.5M.
Failure to hold $21.50 may extend the downtrend.
FAQs: AVAX Price and Market Outlook
Q: What is a falling wedge pattern?
A: A bullish reversal pattern where price consolidates between descending support/resistance lines, typically breaking upward.
Q: Why are daily active addresses important?
A: They measure real network usage—a surge often precedes price rallies as adoption grows.
Q: What’s the short-term price target for AVAX?
A: A breakout above $25 could propel AVAX to $30, with $21.50 as critical support.
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Disclaimer
This article expresses informational views only—not financial advice. Crypto investments carry risks of capital loss.
— Olivia Stephanie, FinTech Analyst
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**Notes:**
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- Expanded technical analysis with RSI/MACD details.