Will Avalanche (AVAX) Break $30 Soon?

Avalanche (AVAX) Surges 10%: Price Breaks Key Resistance

Avalanche (AVAX) has experienced a significant price jump, surging around 10% in the last 24 hours. The cryptocurrency rose from $26.14 to a high of $28.66, breaking out of a falling wedge pattern. Notably, the 9-day moving average (MA) has crossed above the 21-day MA, signaling potential bullish momentum.

As the overall cryptocurrency market trends upward, Bitcoin (BTC) has climbed to $64,000, sparking rallies among major altcoins, including Avalanche. AVAX has gained approximately 10%, hitting an intraday high of $28.66, a price level not seen since July 25.

At the time of writing, Avalanche is trading at $28.14, with a market capitalization of $11.42 billion. The daily trading volume has increased by about 11%, reaching $496 million. Historically, AVAX has shown significant volatility, particularly during the last bull market in March when several cryptocurrencies hit all-time highs.

Technical Analysis and Price Projections for Avalanche (AVAX)

After reaching an all-time high of $140 in November 2021, Avalanche’s price dropped to single digits, frequently testing resistance levels between $22 and $25. A brief bull run in December 2023 pushed AVAX above $60 during Bitcoin’s peak, but the subsequent market correction subdued bullish sentiment.

Since July, Avalanche has struggled to break past the $30 resistance level. However, recent optimism surrounding the Federal Reserve’s rate cuts has renewed hope in the crypto community. With Bitcoin breaking through its $64,000 barrier, many expect Avalanche to follow suit and surpass its yearly highs.

Key Technical Indicators for AVAX

Several technical indicators point to a bullish outlook for Avalanche:

• Falling Wedge Breakout: AVAX has broken out of a falling wedge pattern, typically a bullish signal.
• Moving Averages: The 9-day MA has crossed above the 21-day MA, indicating upward momentum.
• Relative Strength Index (RSI): The RSI is nearing overbought territory, suggesting continued bullish pressure if buying continues.
• MACD: The MACD is above the signal line, reinforcing the positive sentiment.
• Chaikin Money Flow (CMF): The CMF stands at 0.20, indicating strong capital inflows into AVAX.

Price Targets for Avalanche (AVAX)

If AVAX breaks above the crucial $30 resistance, it could rally toward $37, where it may face another key resistance level. Successfully breaking through this could push the price further to $40. In an extended bullish scenario, AVAX could potentially reach $50 or even $62 in the coming weeks.

Potential Downside Risks

However, if AVAX fails to maintain support above $25, the price could drop to $23 or lower, potentially falling below $20. Traders should monitor these support levels closely for any potential trend reversals.