Volatility in the markets has been changing subtly since the leading cryptos showed wild fluctuations. Amid increasing speculation that BTC and ETH will form a new ATH in the near future, altcoin ‘s have gained strength. These altcoins include Avalanche, which has added over 16% in weekly gains and a slight pullback of 3%, likely due to bull fatigue.
The price was stuck inside a diagonal resistance line that maintained a downward trend for a long period of time. The recent price action caused it to break out of the range accompanied by high volume, reinforcing the bull story. Besides this, market sentiments are extremely bullish ahead of the approval of Ethereum’s spot ETF. AVAX price has reached the peak of the confluence and, therefore, a bull push is expected soon that will trigger a 40% increase.
The 4-hour chart of AVAX price shows that the price has reached local tops and therefore may be prone to a minor retracement. This situation Ethereum It may cause its rival to enter the parallel channel that it broke a few days ago. The RSI is also testing the ascending trend line and the DMI is closer to a bearish move as the ADX is about to break down.
Considering the above scenario, Avalanche price could either recover before reaching lower support or, as mentioned earlier, it could slide below $37 and start a fresh increase right before the close of the day. However, in both cases, it is believed that the bulls will trigger a strong recovery after the bearish consolidation ends, which could lead to a 40% rally to $60 by trading in an accumulated range.
