As June draws to a close, the cryptocurrency market is hinting at a positive finish. After a period of decline, most tokens are experiencing a surge, with a notable rise in liquidity for established players like Avalanche (AVAX) and Polkadot (DOT). Both tokens have witnessed an impressive jump of over 8% since the start of trading today. But can they sustain this momentum and breach key resistance levels in July?

Avalanche, in particular, is undergoing a significant rebound after dipping to its yearly low of nearly $23. This triggered a surge in investor interest, injecting much-needed liquidity back into the market. The price is currently attempting to reclaim a critical resistance zone that previously served as a launchpad for previous rallies. A successful breakout above this level, coupled with a positive market sentiment, could propel AVAX 40% higher.

However, the road to recovery might not be entirely smooth. Since being rejected after exceeding $60, AVAX has been trading within a descending channel. While the recent price action indicates a potential reversal, a period of consolidation similar to the one observed in April and May might occur before a breakout. Interestingly, the Relative Strength Index (RSI) echoes this pattern, suggesting a temporary holding period. The Directional Movement Index (DMI), however, hints at a bullish breakout on the horizon, further strengthening the possibility of a sustained accumulation phase.

This current rebound marks a crucial turning point, with bulls regaining control after a month of relative passivity. If this trend continues, AVAX is expected to conquer the resistance zone and surpass $30 within the first few days of the third quarter.

Polkadot (DOT), on the other hand, has seen its dominance wane with the rise of primitive tokens. However, there are signs of a potential resurgence that could propel it back into the top 10 cryptocurrencies. The recent bearish trend forced DOT to relinquish support from a key symmetrical triangle. The current price action appears to be a rectification attempt, with a bullish close for the week potentially paving the way for a more significant upswing.

The ongoing recovery signifies a resurgence of bullish power, evident in the rising Bull Bear Power indicator. For a sustained rally, DOT needs to climb toward the supertrend line. A successful breach above this level could trigger a fresh bullish phase, potentially leading to a surge towards the upper resistance zone between $7.27 and $7.43. Analysts believe that bears have likely lost control in this range, and a clear breakout could initiate a fresh climb toward a double-digit target.

While the future remains uncertain, the current market sentiment suggests a potential turnaround for Avalanche and Polkadot. July could be a pivotal month for both tokens, with the possibility of significant gains hinging on their ability to overcome key resistance levels.

By Joadin Maina

Beyond the hype, I untangle the web3 revolution, guiding curious minds through the labyrinth of decentralized possibilities.