Avalanche (AVAX) is currently trading at $26.42, after an impressive 30% surge from $20 to $27.
After a steep correction from its March peak, Avalanche has remained relatively quiet, underperforming stronger altcoins. However, Avalanche is gaining momentum, with analysts and investors sharing crucial data that points to a potential rally in the coming months.
This renewed optimism suggests that Avalanche is poised for a major breakout, so it will be important to keep a close eye on developments in the market.
Avalanche rally approaching
Avalanche is creating a lot of excitement among investors and analysts, who are expecting a possible rally from current levels to new highs.
Leading crypto analyst and investor Allincrypto recently shared a detailed graph on Xwhich provides a technical projection of the next significant move for AVAX. The chart highlights the price action of AVAX 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. However, recent price action has confirmed it as solid support after a successful retest in recent weeks.
The technical outlook suggests that Layer-1 (L1) could be on the cusp of a significant upward move, similar to the rally it experienced between October 2023 and March this year. During this period, AVAX posted notable gains of over 600% and many in the crypto community believe that current market conditions could lead to a similar (or greater) outcome.
A combination of solid technical indicators and growing investor confidence is fueling anticipation. With Avalanche holding firmly above its previous resistance and turning it into support, the stage seems set for a new rally that could propel Avalanche to new heights. The coming weeks will be crucial in determining whether AVAX can maintain this momentum and live up to the bullish expectations of the crypto community.
AVAX tags $27 and breaks above local high
Yesterday, AVAX rose to $27 on excitement sparked by comments from Federal Reserve Chairman Jerome Powell, who proposed a possible policy changeand investors now expect a 25 basis point rate cut before September 18. This announcement fueled optimism in the crypto market and drove AVAX to this price level.
However, after reaching $27, AVAX started to consolidate below this price, and is currently trading at $26.35. This consolidation comes after it successfully broke above the previous high of $22.8, signaling strength and setting its sights on the next significant resistance at $33.
For AVAX bulls, it is crucial to maintain momentum above $27 to sustain the rally. However, if the price fails to hold above this level and consolidates, the expected rally could be further delayed as it has not yet recovered above the daily 200 Moving Average, a crucial indicator for confirming a bullish trend. Staying above this moving average would signal that Avalanche is on a solid path to further gains, but until then, the market remains cautious.
Main image created with Dall-E, chart from Tradingview.com