AVAX, the native token of the Avalanche protocol, is primed for a potential price breakout after another week of significant mixed price action. In line with the widespread rise in the crypto market, the altcoin had initially risen to $14.85 before returning below the $13.50 price. According to analyst Ali Martinez, AVAX is now at a new critical price momentum, with the next price move likely to determine the short-term trend.
This is why AVAX needs to clear the resistance at $14.83
In one X message on January 16, Martinez shares insightful analysis of the AVAX 12-hour trading chart, identifying a key price zone and chart formation. According to the technical overview presented, AVAX’s recent rejection around $14.85 can be attributed to heavy resistance in this region. Most notably, the altcoin has struggled to break this $14.83 price barrier three times in the past month, indicating significant willingness among investors to sell when the price approaches this zone. This could be caused by a general view of such a price as a good profit zone or the expectation of a price drop based on historical data.
It is worth noting that Martinez’s analysis also shows that the AVAX price movement has formed an inverse head and shoulders pattern, promoting an impending upside breakout. For context, the inverse H&S formation is a bullish pattern that signals a potential trend reversal. As seen above, it consists of three valleys: the left shoulder, where the price drops and then returns; the head, a deeper drop to around $11.26 followed by a recovery, and the right shoulder, a higher low ($13.75) that fails to reach the depth of the head.
All rebound highs are connected by a resistance line ($14.83) known as the neckline. And a bullish breakout indicates increasing buying pressure. Therefore, Martinez explains that AVAX must decisively overcome this barrier to trigger a bullish breakout to $17.59 as an initial price target. With continued buying pressure, the analyst predicts a further increase to $18.41, which represents a potential gain of 35% from current market prices.
AVAX Market Overview
At the time of writing, AVAX is trading at . $13.61 reflects small losses of 1.19% and 1.34% over the past one and seven days, respectively. Meanwhile, the monthly chart reports a market gain of 14.67%, indicating that the market could indeed experience a trend reversal after the net negative performance in Q4 2025.