- The last few days saw Avalanche breaking out of low volatility to display a bullish superiority.
- The token’s funding rate turned negative, while the short/long ratio confirmed a bullish edge.
AVAX bulls eventually snapped the trend-line support after seven months. The current bullish run put the alternative token beyond the Bollinger Bands’ basis line, depicting a massive buying edge. In pursuit of new highs, the alternative coin targeted the BB’s upper band around its nearest resistance range.
The coming sessions can see bears striving to cancel the green candles spree. While publishing this blog, AVAX changed hands at $19.29.
Avalanche’s Patterned Breakout Might Welcome Trend Reversal
Avalanche dropped around 50% of its value following reversals from the trend-line resistance between mid-August and mid-October. Nevertheless, the baseline at $14.8 revived the buying momentum as bulls overturned this level from an obstacle to a foothold.
Meanwhile, the bullish resurgence triggered a well-required plunging wedge breakout that welcomed more than 24% growth within the past ten days. The volatile break saw the BB’s upper bank exhibiting northbound actions, flashing a massive bullish edge.
A closing beyond the resistance range of $19.4 – $20.2 might confirm the probability of an extended breakout rally. Such circumstances would see buyers targeting a test of the resistance at $22 – $23 in the upcoming sessions. Nevertheless, reversals from the closest ceiling might trigger a short-term plunge before buyers push for a rebound.
In such cases, the initial support floor would stand at $18.2 before the Bollinger Bands’ basis line. The RSI (Relative Strength Index) approached the overbought territory, confirming a stretched buying advantage.
A decisive rebound from this area might lessen the buying momentum before AVAX bulls extend their rally. Moreover, the Volume Oscillator’s latest highs bearishly diverged with Avalanche’s price action.
Funding Rates & Short/Long Ratio
AVAX’s Binance funding rates maintained uptrends since mid-October. Nevertheless, the latest drop in peaks drags the rates beneath the zero level toward the negative region. Enthusiasts should watch for potential reversals beyond zero to measure the probability of continued rallies.
Surprisingly, the short/long ratio slightly favored buyers, whereas the broad sentiment noted an improvement. Nevertheless, targets would stay as highlighted above.