Avalanche (AVAX) Price Outlook: Potential for Strong Breakout in 2025
The cryptocurrency markets are currently navigating within a narrow range, struggling to break through resistance while holding support during bearish attacks. As a result, the volume of many tokens, including Avalanche (AVAX), has significantly decreased, leading to reduced volatility. However, this consolidation phase could be a precursor to a strong breakout that may propel AVAX price levels higher beyond the current range.
AVAX: Undervalued and Ready to Outperform
Avalanche is considered one of the tokens with the potential to outperform top cryptocurrencies, like Bitcoin and Ethereum, in the upcoming price action. Many analysts believe that AVAX is heavily undervalued at its current price levels. Despite the anticipation surrounding the launch of Avalanche 9000—seen as the largest-ever upgrade to the platform—there was little price movement following its release. This underperformance came despite a pre-launch rally that pushed the price toward yearly highs, only to be followed by a sharp decline of over 30%.
AVAX Price Action: Bearish Trends and Potential Upside
While AVAX has struggled to rise above $40 in recent weeks, concerns about its next move remain. However, when viewed from a broader perspective, the AVAX price is primed for a potential 50% upswing. A key milestone to watch for is a 12% increase before the end of 2024. If the bulls manage to push the price higher, there is a possibility of significant gains heading into 2025.
Technical Analysis: Key Levels for AVAX Price
The daily chart for AVAX suggests that the token is heading toward immediate lower support, potentially losing the 0.5 FIB level at $36.26. The Moving Average Convergence Divergence (MACD) shows a reduction in selling pressure but has yet to signal a buy trend. Meanwhile, bears still hold a dominant position, as indicated by the bull-bear power indicator, which suggests that another pullback of around 10% could be imminent, possibly reaching the interim support at the 0.382 FIB level at $32.2.
Key Support Levels for AVAX:
- 0.5 FIB at $36.26 – Immediate lower support
- 0.382 FIB at $32.2 – Interim support if the price continues to decline
These support levels have provided strong backing for AVAX in the past, so a rebound at these levels is possible. However, market sentiment remains neutral, with traders waiting for a catalyst to drive the price higher. Until there is sufficient volume to support a bullish trend, AVAX is likely to continue trading in a sluggish range.
AVAX: The Sleeping Giant
Avalanche is often referred to as the “sleeping giant” of the cryptocurrency market due to its significant potential. While it has defended its support levels well, the decreased market volatility has slowed its progress. As long as Bitcoin dominance remains high, altcoins like AVAX may experience muted performance. Nevertheless, AVAX still has the potential to break above $50, provided it can first sustain a level above $42 by the close of 2024 or in the early days of 2025.
Outlook for the Future:
- Key resistance to watch: $42 by end of 2024 or early 2025
- Long-term target: Above $50 for a potential rally
In conclusion, while AVAX faces some challenges in the short term, its long-term outlook remains positive. A strong breakout could be on the horizon, especially if the token manages to overcome its current resistance levels and gain momentum heading into 2025.
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