Avalanche (AVAX) is currently trading at $26.42, following an impressive 30% surge from the $20 mark to $27.
After a steep correction from its peak in March, Avalanche has been relatively quiet, underperforming compared to stronger altcoins. However, Avalanche is gaining momentum, with analysts and investors sharing crucial data pointing to a potential rally in the coming months.
This renewed optimism suggests that Avalanche might be on the verge of a significant breakout, making it one to watch closely as the market evolves.
Avalanche Rally On The Horizon
Avalanche is generating significant buzz among investors and analysts who are anticipating a potential rally from its current level to new highs.
Prominent crypto analyst and investor Allincrypto recently shared a detailed chart on X, providing a technical projection of AVAX’s next significant move. The chart highlights AVAX’s price action since the last bull run, underscoring the importance of the $20 price level. This level was a significant resistance point several months before the last rally. Still, recent price action has confirmed it as solid support after a successful retest over the past few weeks.
The technical outlook suggests that the Layer-1 (L1) could be on the brink of a significant upward move, similar to the rally it experienced between October 2023 and March this year. This period saw AVAX achieve remarkable gains of over 600%, and many in the crypto community believe that the current market conditions could lead to a similar (or a bigger) outcome.
A combination of solid technical indicators and growing investor confidence fuels the anticipation. With Avalanche holding firmly above its previous resistance and turning it into support, the path seems clear for a new rally that could propel Avalanche to new highs. The next few weeks will be crucial in determining whether AVAX can sustain this momentum and fulfill the bullish expectations set by the crypto community.
AVAX Tags $27 And Breaks Above Local High
Yesterday, AVAX rose to $27 following excitement sparked by comments from Federal Reserve Chairman Jerome Powell, who suggested a potential policy shift, and investors now expect a 25bps interest rate cut by September 18. This announcement fueled optimism across the crypto market, driving AVAX to this price level.
However, after reaching $27, AVAX began to consolidate below this price, currently trading at $26.35. This consolidation comes after it successfully broke above the previous high at $22.8, signaling strength and setting its sights on the next significant resistance at $33.
For AVAX bulls, maintaining momentum above $27 is crucial for sustaining the rally. However, if the price fails to hold and consolidate above this level, the anticipated rally may be delayed further, as it has yet to recover above the daily 200 Moving Average—a critical indicator for confirming a bullish trend. Holding above this moving average would signal that Avalanche is on a solid path toward further gains, but until then, the market remains cautious.
Featured image created with Dall-E, chart from Tradingview.com
Powered by WPeMatico
