Avalanche (AVAX) is trading around $25 after a 10% surge since last Thursday, while the broader crypto market shows signs of recovery. Bitcoin and most altcoins are trending higher from their yearly lows, with AVAX at a critical price level that could shape its price action in the coming weeks.
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Analysts and investors are closely monitoring the situation, predicting significant volatility for Avalanche. Many are calling for a potential change in trend, with some projecting a sharp and aggressive recovery if AVAX manages to break out of its weekly bearish structure.
However, this volatility could also lead to downside risks if key support levels are lost. The next few days will be crucial in determining whether AVAX can capitalize on market dynamics or face further turbulence.
Avalanche trend change will lead to higher prices
The market is at a turning point as previously fearful investors are beginning to feel encouraged by recent price action. Avalanche (AVAX) is up 25% from its local lows since September 6 and is now trading at a key level that could determine the direction of its price in the coming months.
This crucial level caught the attention of both analysts and investors, particularly one prominent analyst, Daan, who shared his technical insights into X.
In his analysis, Daan points out a well-defined descending channel that has kept AVAX in a downtrend for several months. However, AVAX is now attempting to break out of this descending channel, a move that could signal the end of its bearish phase.
If AVAX successfully breaks the $25 resistance level, Daan predicts that the price could quickly move towards $28. Such a breakout would represent a significant change in the short- to medium-term trend, potentially shifting market sentiment and setting the stage for further upside.
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A successful breakout would likely trigger a fresh wave of buying pressure, with analysts projecting an aggressive rally toward $30 or higher in the coming weeks. The next few days will be crucial, and any failure to break the resistance could see AVAX fall back into the descending channel, retesting lower support levels.
AVAX Price Action: Key Levels to Watch
AVAX is trading at $25.04 after a 4-hour uptrend marked by higher highs and higher lows. This positive move followed a break above the 200 4-hour exponential moving average (EMA), which AVAX successfully tested as support last Thursday, signaling short-term strength. This move encouraged bullish sentiment among traders.
The next main challenge for AVAX is to break the $28 resistance level. This would confirm a more significant uptrend and signal a change in structure on higher time frames, potentially setting the stage for even higher prices in the coming weeks.
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However, if AVAX fails to maintain its position above the 4-hour 200 EMA, currently at $23.5, the price could experience volatility or a deeper correction, with lower demand levels likely to be tested.
Featured image of Dall-E, chart from TradingView