The cryptocurrency market is rebounding after sharp declines earlier this week. The drop in U.S. inflation to 2.8% has bolstered investor optimism.
Crypto Market Recovery
Bitcoin (BTC) is trading above $83K again after the recent drop to $80K. Altcoins like Avalanche (AVAX) and Near Protocol (NEAR) are showing early breakout signals, with gains of over 6% and 8%, respectively.
Avalanche (AVAX) Analysis
The daily chart for AVAX shows a falling wedge formation, a bullish reversal pattern that began after rejection from the December 4 high of $55. The prolonged correction led AVAX to fall over 72% to $15. Currently, AVAX is trading at $19, approaching the wedge's upper resistance. A breakout could target the next key resistance at $27, aligning with the 50-day moving average.
Near Protocol (NEAR) Analysis
Like AVAX, NEAR is trading within a falling wedge since peaking at $8.24 on December 6. The recent downtrend reached a $2.16 low, attracting buyer interest. NEAR has bounced to $2.63 and is testing the wedge's upper boundary. A confirmed breakout could see NEAR aim for $3.62, in alignment with the 50-day moving average.
Both AVAX and NEAR are on the verge of key breakout moves, signaling potential trend reversals. Bitcoin's stability above $83K could stimulate these breakout attempts.
