This article is available in Spanish.
Avalanche (AVAX) is trading around $25, after rising 10% since last Thursday, while the broader crypto market shows signs of recovery. Bitcoin and most altcoins are trending up from their yearly lows, with AVAX at a critical price level that could determine price action in the coming weeks.
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Analysts and investors are closely monitoring the situation and predict significant volatility for Avalanche. Many are calling for a possible trend change, with some predicting a sharp and aggressive rally if AVAX can break its weekly bearish structure.
However, this volatility can also lead to downside risks if key support levels are lost. The coming days will be critical in determining whether AVAX can benefit from the market momentum or face more turbulence.
Avalanche change of the trend will lead to higher prices
The market is at an inflection point as previously fearful investors begin to feel emboldened by the 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 set the price direction for the coming months.
This crucial level has caught the attention of analysts and investors alike, especially one prominent analyst, Daan, who shared his technical insights about X.
In his analysis, Daan points out a well-defined bearish channel that has been keeping AVAX in a downtrend for several months. However, AVAX is now trying to break out of this descending channel, a move that could herald the end of the bearish phase.
If AVAX successfully breaks the $25 resistance level, Daan predicts that the price could quickly move towards $28. This break would mark a significant shift in the short- to medium-term trend, potentially changing market sentiment and paving the way for more upside potential.
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A successful breakout would likely trigger a new wave of buying pressure, with analysts predicting an aggressive rally toward $30 or higher in the coming weeks. The next few days will be crucial, and if resistance is not broken, AVAX could fall back into the bearish channel, retesting lower support levels.
AVAX Price Action: Key Levels to Watch
AVAX is trading at $25.04 after a four-hour uptrend marked by higher highs and higher lows. This positive move followed a break past the 4-hour 200 exponential moving average (EMA), which AVAX successfully tested as support last Thursday, indicating near-term strength. This move has encouraged bullish sentiment among traders.
The next major challenge for AVAX is to break the USD 28 resistance level. This would confirm a more significant uptrend and signal a change in longer-term structure, potentially paving the way 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