On February 15th, the crypto market showcased a neutral stance as Bitcoin price witnessed overhead supply at $100k. The selling pressure has stalled recovery momentum in most major altcoins, including AVAX. However, the Avalanche price is positioned at the bottom of a key bullish pattern, indicating substantial growth potential if markets rebound.
Key Highlights:
- A symmetrical triangle pattern drives the current sideways trend in Avalanche price.
- Since August 2024, the bottom trendline of the triangle pattern has acted as a key accumulation zone for crypto buyers.
- Despite the AVAX OI drop, buyers are still willing to hold longs, suggesting confidence in future price appreciation
AVAX Futures Market Sees Mass Liquidations, But Funding Rate Signals Optimism
According to Coinglass data, the AVAX Futures Open Interest has plunged from $738 Million to $406M — a 44% decrease in the last three weeks.
The reduction in futures OI suggests that leveraged traders are reducing exposure, which could indicate profit-taking or uncertainty in the market.
However, the AVAX OI-Weighted Funding Rate bounced to $0.0094 regions, indicating that the market buyers are paying a premium for holding a long position in this asset.
If funding remains positive and demand for longs persists, AVAX could see upward price pressure in the near term.
Avalanche Price Hints Major Reversal Pattern Triangle Pattern
For over a week, the Avalanche price has been hovering above the $23 support as the broader market shows a lack of bullish momentum. However, the AVAX coin consolidation is positioned above the support trendline of the well-known continuation pattern called a symmetrical triangle.
Since mid-March 2024, the chart setup has led to an accumulation trend resonating within two trendlines. Historical behavior shows each reversal from the bottom trendline has bolstered buyers with renewed buying momentum and price rallies.
If the theory holds, the Avalanche price will surpass the downsloping trendline (red) and surge 30% high to challenge the $35.4 level, followed by $45.
Also Read: Ethereum Pectra: Testing Begins Feb 24, Mainnet Launch Set for April 8
