Avalanche (AVAX) soared around 10% in the last 24 hours, rising from $26.14 to a high of $28.66.
The price has broken out of a falling wedge pattern, and the 9-day MA has crossed above the 21-day MA.
As the cryptocurrency market showcases an upward shift, Bitcoin (BTC) has climbed to $64,000, prompting a rally among leading altcoins, including Avalanche (AVAX). In the past 24 hours, AVAX has gained around 10%, rising from a low of $26.14 to an intraday high of $28.66, a level not seen since July 25.
AVAX Price Chart (Source: CoinMarketCap )
Currently, Avalanche is trading at $28.14, with a market cap of $11.42 billion. Additionally, the daily trading volume has seen an uptick, increasing by around 11% to $496 million. Historically, AVAX has displayed significant volatility, especially during the last bull market in March, when many cryptocurrencies traded above expectation and hit all-time highs.
Technical Analysis and Price Projections for Avalanche (AVAX)
After peaking at $140 in November 2021, the price had plunged into single digits but often tested the resistance between $22 and $25. However, a minor bull run in late December 2023 pushed AVAX beyond the $60 mark during Bitcoin’s all-time high, only to face a correction that dampened bullish sentiment.
Even Avalanche has struggled to breach the $30 resistance level since July. However, following the recent Federal Reserve rate cuts, optimism has surged within the crypto community. As Bitcoin breaks through its crucial $64,000 barrier, many are hopeful that Avalanche could also surpass its yearly highs.
Technical analysis reveals that AVAX has broken out of a falling wedge pattern, exhibiting strong bullish candles. According to the AVAX 4-hour price chart, the 9-day moving average has crossed above the 21-day moving average, suggesting a positive trend. Additionally, the Relative Strength Index (RSI) is nearing overbought territory, which could indicate sustained bullish momentum if buying pressure continues.
Avalanche (AVAX) Price Chart (Source: TradingView )
Further, the MACD is currently positioned above the signal line, and the Chaikin Money Flow (CMF) stands at 0.20, reflecting a strong bullish sentiment in the market.
With these indicators, if Avalanche (AVAX) breaks above the $30 level, it could pave the way for further gains toward $37, where it may encounter another resistance. If it successfully surpasses this peak, we could see the price rise above $40. In such a scenario, AVAX might continue its upward trend, potentially reaching $50 or even $62 in the coming weeks.
However, if AVAX fails to maintain its position above the crucial support level at $25, it may decline to $23 and could even drop below $20. Monitoring these levels will be key for traders.
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