Avalanche made a significant breakthrough by surpassing long-term resistance. The weekly chart indicates a remarkable uptrend for AVAX since October, with eight out of nine weeks forming bullish candles. This week, the price surged even higher, reaching an annual high of $42.90.
During this impressive growth, the token successfully broke a descending resistance line that had been in place for 750 days. This breakthrough accelerated the rate of growth and resulted in a large bullish candle with an impressive 70% amplitude.
Source: TradingView
The RSI momentum indicator is currently in overbought territory, but there are no clear signals of bearish divergence as of yet.
Various analysts and traders on Platform X are overwhelmingly positive about AVAX’s future prospects. AlienOPS, for example, has identified the $55 price level as their first area of interest, indicating that they plan to sell some of their holdings at that point. Other analysts like JJCycles have similar targets at $53, while Solstice expects AVAX to reach $50. Additionally, Rune pointed out that the AVAX blockchain is comparable in size to the Solana (SOL) blockchain.
AVAX Forecast: Is Price Approaching a Top?
On the daily timeframe, wave analysis suggests that AVAX is currently in the fifth and final wave of a bullish structure that began forming in October. As the length of the fifth wave is 0.618 times the length of the first and third waves combined, it is possible that the price is approaching a top.
However, it is important to note that the daily RSI has not yet shown any bearish divergence. In fact, it recently broke out of a previous bearish divergence trendline in a bullish manner. If AVAX manages to break above $44, there is a potential for a 50% rise that could take it to the next resistance level at $59. This would mark a new yearly high and create a fifth wave that is equal in length to the combined length of waves 1 and 3.
Source: TradingView
On the other hand, if AVAX fails to break above the $44 resistance level, it might signify the end of the upward movement. This could potentially lead to a 45% decline, bringing the price to the $22 horizontal support area.
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