Market data suggests Avalanche (AVAX) is rallying
Avalanche (AVAX) may rally after months of tough adjustments. To confirm a daily timeframe structural change, AVAX broke through important resistance at $22.80 and is now trading at $23.43.
The cryptocurrency has been correcting since its March high, so this move is important. After a protracted fall, AVAX is showing vigor, attracting experts and investors. Many expect a positive increase in the coming months as the coin recovers from its long fall.
AVAX Correction May End
Avalanche has fallen almost 70% from its peak since March. Many experts feel this negative trend may have stopped, allowing a fresh bounce.
AVAX's price behavior inside a 6-month descending channel, a bullish reversal pattern, was noted by crypto analyst and trader Dom from X. Dom says a reversal is proven when the bearish structure breaks at higher periods.
Dom is monitoring the $25 psychological threshold for confirmation. A sustained rise above this level would imply a greater bullish movement and boost AVAX.
Analysts are enthusiastic about the L1 blockchain's future as it recovers. The token's trading around a key signal has the market looking for further optimistic signs.
Before rallying, price must test a key liquidity level. This test will determine if the current upward momentum can be maintained or whether consolidation is required.
At $23.43, Avalanche is challenging the 4-hour (4H) 200 exponential moving average (EMA), a technical indicator not tested since July 29. This level is important because it frequently serves as market barrier. If AVAX consolidates above this 4H 200 EMA, bulls may target $25.88, a significant milestone that might cement the upswing.
If the price fails to close above the 4H 200 EMA, it may challenge the prior high at $22.80. The market will keenly follow AVAX's price activity in the next days for a prolonged climb or a fall. The appropriate momentum might lead to big benefits.
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