Avalanche (AVAX) has been showing signs of a potential bullish breakout, spurred by escalating rumors of an AVAX Exchange-Traded Fund (ETF) following VanEck’s recent filing for a Solana ETF. Despite recent setbacks from the BtcTurk exchange hack, AVAX surged by 9.1% over the past 24 hours, reaching $27.96 at press time.

The rumors of an AVAX ETF followed the news that VanEck had filed for a Solana ETF, citing that the crypto asset was a commodity. The price of AVAX took a huge hit to its price last week following the BtcTurk exchange hack. AVAX price hit a yearly high in March but then began a slow descent, forming a falling wedge in the process. Falling wedges are bullish market structures with a higher chance of breaking to the upside.

The Avalanche price action just crossed above the 50-day simple moving average (SMA) but is still below the 200-day SMA. The AVAX 14-day relative strength index (RSI) dropped to the oversold area on Monday before bouncing back up and crossing above the RSI moving average (MA). Sitting at 43, the RSI is approaching the midpoint, and eying the 60 level where the first instance of a resistance exists. If the AVAX price breaks above the falling wedge, it could result in a 76% rally that catapults the price to $58. On the flip side, if bears persist, the price of Avalanche could drop further and find support around $23.51, and $19.54.

On a lower time frame, AVAX price just broke out of an inverted head and shoulders pattern. The profit target for the market structure predicts Avalanche price will have another 7% upside move in a short time. This may bring the price of Avalanche to $30.07. Coinalyze data shows the aggregated 24-hour open interest (OI) for Avalanche increased by 6.14%, indicating investors are accumulating AVAX and anticipating further movement to the upside. Data from Santiment, a behavior analysis platform, shows that the AVAX rally is being mostly ignored by the crowd, meaning the rally is more likely to continue. When the fear of missing out (FOMO) is high on an asset, the likelihood of a correction is high.

Avalanche (AVAX) strengthened its case for a potential upside run towards $160 in the coming sessions as it broke out of a classic bullish pattern earlier this week. Dubbed "bull flag," the pattern emerges when the price consolidates lower/sideways between two parallel trendlines (flag) after undergoing a strong upside move (flagpole). Later, in theory, the price breaks out of the channel range to continue the uptrend and tends to rise by as much as the flagpole's height.