May 30, 2024

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Shiba Inu vs Avalanche: Does AVAX threaten SHIB’s base?

Shiba Inu vs Avalanche: Does AVAX threaten SHIB’s base?

  • Avalanche is up more than 7% in the past seven days.
  • Despite the price rise, market sentiment around AVAX remained bearish.

Unlike most cryptocurrencies, Avalanche [AVAX] The bulls were holding their positions as the token managed to maintain its upward price trend.

In fact, its price has reached a critical level that could trigger a bullish rally, allowing it to flip Shiba Inu [SHIB] Becoming the eleventh largest cryptocurrency.

An avalanche is about to break through

according to CoinMarketCapAVAX price has risen more than 7% in the past seven days. In the past 24 hours alone, the value of the token has increased by more than 4%.

At the time of writing, Avalanche is trading at $37.09 with a market cap of over $14 billion, making it the 12th largest cryptocurrency.

Meanwhile, World Of Charts, a popular cryptocurrency analyst, recently posted tweet It highlights the falling wedge pattern that appeared on the 4-hour chart of AVAX.

The good news is that AVAX price was about to break above this pattern. If the token can do this, investors can expect a significant upside.

The upcoming rally may also allow AVAX to flip SHIB, the difference in its market capitalization was only $400 million. AMBCrypto’s analysis of Glassnode data revealed that SHIB has more concerns.

SHIB’s NVT ratio registered a slight increase, indicating a price decline. A drop in SHIB price could help AVAX flip the meme coin if it breaks above the falling wedge.

The Shiba Inu's NVT ratio has increased

Source: Glassnode

Is AVAX’s upside inevitable?

To see the chances of AVAX remaining bullish, AMBCrypto analyzed its metrics. We found that open interest increased with its price.

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This indicates that the upside rally may continue and allow AVAX to break out of the falling wedge. However, sentiment around AVAX remained bearish as weighted sentiment remained low.

Open interest for Avalanche has increased

Source: Santiment

Chaikin Cash Flow (CMF) supported the potential for a breakout as it posted a slight increase and headed above the neutral mark.

Moreover, the MACD also showed a bullish crossover, which also indicates continued price increases.

However, the Relative Strength Index (RSI) and Money Flow Index (MFI) remained bearish as they moved sideways in the past few days.


is reading Avalanches [AVAX] Price prediction 2024-25


Given the best-case scenario in which AVAX breaks out, the first possible target it should reach is $40.

A successful breakout above this level could allow the token to cross $50 in the coming days, which could lead to AVAX flipping SHIB.

Source: Trading View