Date: Tue, Dec 10, 2024, 12:10 PM GMT
The cryptocurrency market is currently experiencing a sharp correction, impacting the prices of many altcoins as Bitcoin (BTC) falls by 1.88%, dragging the broader market down. Liquidations across the market have surged to a staggering $1.55 billion.
Amid this correction, Avalanche (AVAX) and Polkadot (DOT), despite trading in the red, have managed to recover from their day lows. Notably, both tokens made major breakouts recently and recorded gains of 39% (AVAX) and 60% (DOT) from their respective downtrends.
The ongoing correction has now successfully retested these breakout levels, positioning both tokens for potential upside moves.
Avalanche (AVAX):
Avalanche (AVAX) has been on a consistent bullish run over the past month, culminating in a major breakout from a Descending Triangle pattern that lasted nearly 3 years. The breakout occurred on Nov. 27, 2024, when AVAX broke above its descending resistance trendline. This move pushed the price to a high of $55.79, marking a significant upward move.
With the market’s recent correction, AVAX successfully retested the descending resistance line near the $41 level, which has now turned into strong support. This retest confirms the breakout as valid and shows the token’s resilience. At the time of writing, AVAX is trading at $44.52, holding above the key support level and showing potential for a further upward move.
From here, AVAX could look to approach its recent high of $55.79, which is still a 25% gain from the current price level.
Polkadot (DOT):
Polkadot (DOT) has similarly experienced strong bullish momentum over the past month, allowing it to break out of a Descending Triangle pattern that had kept the price capped for over 2 years. The breakout took place on Nov. 25, 2024, when DOT finally pushed above its descending resistance trendline. This breakout triggered a significant rally that saw the price reach a high of $12.05.
Following the broader market correction, DOT successfully retested the descending resistance trendline today near the $4.50 level and bounced back strongly. This retest further solidified the breakout, indicating strength in the price action. DOT is now trading at $8.35 and showing signs of recovery.
From here, DOT has the potential to revisit its recent high of $12.05, representing an impressive 45% upside from its current levels.
What To Expect Ahead?
Both Avalanche (AVAX) and Polkadot (DOT) have demonstrated strength by successfully retesting their breakout levels and maintaining key support zones. This is a strong technical signal for potential upside movement in the near term.
However, the broader market remains under pressure. Bitcoin (BTC), while recovering slightly, is still trading just above $97K, and many major altcoins continue to face selling pressure. If Bitcoin manages to stabilize and recover further, it could act as a catalyst for the broader market, including AVAX and DOT.
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