Avalanche experienced a significant increase in its annual high
AVAX price reached a low of $8.65 in October but has been steadily increasing since then. Within 63 days, it has surged by 425%, reaching a new yearly high of $46.40 today.
In the midst of this rally, AVAX managed to break through the 750-day descending resistance line that has been present on the chart since its all-time high. This breakout further accelerated its growth.
Over the past 9 weeks, the token has formed eight bullish weekly candles.
Source: TradingView
The weekly momentum indicator RSI is rising and currently above the neutral level of 50, indicating a bullish trend.
What the analysts are saying
Market analysts and cryptocurrency traders on Platform X are optimistic about Avalanche’s prospects.
Bluntz Capital, for instance, posted a bullish wave chart on Twitter, suggesting AVAX will complete the fifth and final wave at around $55.
4-hour chart AVAX/USDT. Source: X
Flash also maintains a positive outlook, setting a target of $65. He points to a bullish breakout of a long-term pattern and a price move above the horizontal resistance area.
AVAX Forecast: Next Stop: $50
The daily timeframe reflects a bullish outlook. According to Elliott Wave analysis, AVAX is currently in the fifth and final wave of an upward movement that started in September.
This fifth wave is extended and measures more than 0.618 times the combined length of the first and third waves.
If AVAX continues to strengthen, the next target would be $59, which would align the fifth wave with the combined length of the first and third waves. This represents a potential growth of 28%. With its current growth rate, AVAX could achieve this goal as early as December.
The daily RSI supports this possibility as it has made a bullish breakout of the bearish divergence trend line (green) and continues to rise.
Source: TradingView
However, if AVAX closes below $44 on a daily basis, it may indicate that the top has already been reached. In such a scenario, the price could potentially decline by 50% towards the nearest support at $22.
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