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Avalanche (AVAX) has been showing strong bullish trends recently with the price reaching a new high at $35.78. Technical indicators like the Bollinger Bands and RSI are both bullish but suggest that AVAX could see a short-term pullback or consolidation.
Avalanche (AVAX) Breaks Above Bollinger Bands
As seen on the daily trading chart, AVAX’s price is above the upper band of the Bollinger Bands, indicating an upward trend. The recent breakout above the upper Bollinger Band usually leads to a pullback or consolidation. Traders should be more cautious when trading at this price level.
In addition, the RSI stands at 76.71, suggesting that the market has already entered the overbought region. More bullish moves are yet to occur at this RSI level but also traders may consider taking in profit as well.
AVAX enthusiasts remain optimistic sharing on X that AVAX is ready to go wild this cycle. Immediate support is found near $34.34, while key levels and momentum remain close and should be watched as the trend continues.
Analysts Eye Long-Term Potential
Crypto analyst WizzieBlizzie believes that AVAX has recently given a strong suggestion on the daily chart of possible gains so high above the 2021 ATH of $145.
As for the long-term run WizzieBlizzie noticed that AVAX can still reach higher levels, and they set a target of $500 to $1250 if the bullish run persists.
Looks like $AVAX is finally ripping on the daily for the past week.
— Wizzard Blizzard🔺🧙♂️ (@WizzieBlizzie) November 12, 2024
2021 ATH was $145 so a ton more room to just get to there, let alone the cycle top target of $500-$1250
Tx fees dropping 25x after the new proposal passes
Bull market going until Oct 2025
We are so early 🔺 pic.twitter.com/H3QjZuhYJ0
Future protocols that slash transaction fees by 25x might also increase the demand for this asset in the case of a bull market that could persist until 2025.
Other X users share this opinion with targets of $65 and $100 as next levels but some predict that it will not get back to previous ATHs.
Some assume that a change in tack in market sentiment or Solana (SOL) to AVAX could lead to higher growth. When AVAX catches SOL’s market cap, the price of 1 AVAX could reach $250, stated one X user.
Support, Resistance, and Long-Term Indicators
The expanding Bollinger Bands suggest increased volatility, a typical marker of new trends. This upward trend may persist if AVAX sustains support above $27.17 with the next level of resistance at $34.34.
The technical outlook of Avalanche suggests that the price has formed likely bullish momentum which has enhanced volatility and overbought parameters recently. Few analysts expect a short-term decline but they are bullish on long-term projections and if AVAX continues holding on key resistance levels.