As the crypto market witnesses a minor recovery, the altcoins are gradually gaining momentum. One of the top-performing altcoins today is Avalanche, with an intraday recovery of 4.91%.
Currently, the Avalanche price is at $20.45, creating a bullish engulfing candle. With a new bullish candle, the altcoin is teasing a potential breakout rally of a long-standing resistance trendline.
Will this extended rally above the $20 mark result in a breakout run to $54? Let’s find out.
AVAX Price Analysis
In the daily chart, the AVAX price trend showcases a bullish stance at the $16 crucial support level. With a double bottom reversal from this crucial support, Avalanche price is ready to challenge a long-standing resistance trend line.
Currently, the bullish turnaround is struggling to hold ground above the $20 psychological level. The Avalanche price trend also faces opposition from the 23.60% Fibonacci retracement at $21.33.
However, the short-term recovery has overcome the highest trading volume zone, extending from $18.13 to $19.75. This increases the possibility of the Avalanche price skyrocketing to the high trading volume zone near $25.
Furthermore, the Fibonacci levels paint a price target at the 38.20% level near $25.48. However, the altcoin must surpass the local resistance trend line for an extended bull run.
Supporting the possibility of an extended recovery, the technical indicators trigger a buy signal. The MACD and signal lines maintain a positive trend, ready to enter positive territory.
Furthermore, the bullish histograms in the momentum indicator support the upside chances. The daily RSI line, floating above the halfway level, is signalling increased bullish momentum.
As the RSI line witnesses an uptick, the increased momentum supports the possibility of a new breakout rally. The Fibonacci levels, beyond $25, paint the next potential Avalanche price targets at near $34 and $55.
Avalanche Derivatives Support Bullish Chances
With the short-term recovery, the open interest of avalanche derivatives has significantly increased. Currently, the OI stands at $416.67 million, recording a 2.56% surge in 24 hours.
Furthermore, the intraday recovery has flipped the funding rate back into the positive territory. Currently, it stands at 0.0076%, reflecting a growth in bullish sentiments.
However, the taker by 2-cell volume reflects a neutral playing field. The long positions over the past 24 hours stand at 49.95%, with the short positions at 50.05%. This brings the long-to-short ratio to 0.998, maintaining a neutral point of view.
