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- 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.
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.
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.