The cryptocurrency market is starting the new month on a steady note, with Bitcoin (BTC) and Ethereum (ETH) both trading in green. Some altcoins are following the positive sentiment — including Avalanche (AVAX), which is showing early signs of strength.
AVAX is trading in the green today with modest gains, but more importantly, its chart is now displaying a key bullish pattern formation that hints at a potential breakout in the sessions ahead.
Descending Broadening Wedge Pattern in Play
On the 2-hour chart, AVAX has been trading within a descending broadening wedge — a bullish technical pattern that often appears during downtrends and typically signals a potential trend reversal once price breaks to the upside.
During the recent pullback, AVAX briefly dipped to test its lower boundary support near $17.53, where buyers stepped in to defend the level. Since then, the token has begun to rebound, climbing back toward $18.65.
The price now sits near the upper boundary of the wedge, and the range has started to tighten — a condition that frequently precedes sharp breakout moves.
What’s Next for AVAX?
If bulls manage to push AVAX above the upper wedge trendline and reclaim the 100 MA at $19.50, it could trigger a strong upside breakout, potentially targeting the $22.50 region — a move that represents roughly 20% upside from current levels.
However, a rejection near the upper wedge boundary could delay the breakout, keeping AVAX in a consolidation phase for a bit longer. In that case, $17.75 remains the key support level to monitor.
For now, the technical outlook looks promising, and if broader market momentum continues, AVAX could soon join the list of altcoins leading the next leg of the crypto market rally.