according to the materials of the site - By crypto.news

Avalanche shows the first signs of a bullish reversal after forming a potential double bottom at the critical support level. If confirmed, this pattern could trigger a move towards $41.80.

Avalanche (AVAX) is currently trading in a high timeframe support area that has historically served as an important reversal zone. Recent price dynamics indicate the formation of a 'double bottom' structure—a bullish reversal pattern that could shift the prevailing bearish trend towards a more optimistic trajectory. With the additional convergence of the point of control and Fibonacci levels, this configuration signals a potential change in market direction.

The 'double bottom' formation is starting to take shape as AVAX holds above a stable support area. This area also coincides with the point of control, according to the visible range volume profile, confirming its significance. The double bottom in this context represents a transition from prolonged selling pressure to potential accumulation.

The bullish reversal will only be confirmed after surpassing the local maximum, the neckline of the pattern. This not only activates the double bottom but also marks the first higher high, effectively transitioning AVAX into a bullish market structure on higher timeframes.

A confirmed breakout will open the way for a rally to the maximum value area, coinciding with the Fibonacci correction level of 0.618. This defines the next technical target at around $41.80. The price reaction in this resistance zone will be crucial in determining whether AVAX continues its transition into a long-term upward trend.

Current volume remains low, which is typical for the early stages of reversal patterns. An important point is the influx of volume after breaking the local maximum. A sharp increase in buying volume will lend legitimacy to the breakout and could accelerate the move towards $41.80 and above.

What to expect from the upcoming price movement?
If the double bottom holds and AVAX breaks the local maximum on high volume, the likelihood of a move towards $41.80 will be quite high. Traders should expect a decisive move and volume confirmation to validate the bullish breakout scenario.

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