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Avalanche (AVAX) is up over 40%, reaching a crucial supply level that, if broken, could spark a substantial rally. The recent wave has caught the attention of traders and investors who recognize the potential of Layer-1 blockchains, as AVAX positions itself as a leading competitor in the space.
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Among those closely following this development is top analyst and investor Kaleo, who recently shared a technical analysis with a bullish $420 price target for AVAX. Kaleo’s optimistic outlook aligns with broader market sentiment as Bitcoin and Ethereum continue to rise, creating a favorable environment for blue-chip altcoins like Avalanche to make significant moves.
The coming days will be critical in determining whether AVAX can break through this supply level and confirm its bullish trajectory. As more attention shifts to AVAX and other high-profile altcoins, an aggressive upward move could soon follow, cementing Avalanche’s status as a major player in the Layer-1 blockchain sector.
Avalanche rises above key levels
Avalanche recently rose above crucial supply levels, breaking through resistance points that had pressured the price for weeks, with the $30 mark emerging as particularly significant. This breakout has boosted optimism about AVAX’s long-term potential as it signals a bullish shift in momentum.
Top analyst and investor Kaleo took to X to share his technical analysiswith a detailed AVAX price chart with the key levels highlighted. According to Kaleo, Avalanche’s potential in this cycle could drive the price to an ambitious target of $420, which represents a notable 1,200% upside from current levels.
For this bullish scenario to unfold, AVAX must maintain current momentum and overcome additional resistance. Specifically, the price needs to surpass the last higher high around $33, which would strongly confirm a continued bullish structure. Lifting this level would likely boost market confidence and attract new investors as the confirmed uptrend would indicate a potential longer-term rally.
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As AVAX continues its upward trajectory, investor interest in Layer-1 blockchain platforms like Avalanche is growing, underscoring the broader market’s belief in the value of decentralized networks. If AVAX can successfully consolidate above USD 30 and break USD 33, it could open doors for substantial gains in this cycle.
AVAX technical levels to watch
Avalanche is currently trading at $31.4, after breaking above the 200-day moving average (MA) of $28.1, marking a major achievement in AVAX’s price structure. The move has put AVAX in a critical supply zone that has slowed growth since early June.
For bulls looking to confirm a continued bullish trend, AVAX should cross the $33 mark and establish it as a reliable support level. Holding this level could signal a stronger uptrend and generate additional investor confidence.
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However, a healthy consolidation phase could be beneficial at this point. A pullback to test the $29 level as support would strengthen market stability, allowing AVAX to build momentum before attempting the next big move higher. For now, AVAX’s price action appears strong, and a breakout above $33 could set the stage for a prolonged bullish phase in the altcoin market.
Featured image of Dall-E, chart from TradingView