Avalanche (AVAX) appears poised for potential upward movement, with several technical markers attracting interest. Crypto analyst Carl Moon, with over 1.4 million X followers, has identified a falling wedge pattern in AVAX’s daily price chart.
Historically, this formation signals a potential reversal, and Moon anticipates a rally toward $56 once the breakout occurs. Currently, AVAX is consolidating, with traders watching key levels. If momentum shifts upward, the asset could register a substantial gain.
Carl Moon’s analysis highlights a falling wedge pattern, which is often a precursor to a bullish reversal. The chart accompanying his tweet shows that AVAX has previously formed a similar structure, leading to a strong rally upon breakout. The current price action mirrors that historical setup, reinforcing the probability of another surge.
The wedge pattern indicates reduced selling pressure, with AVAX making lower highs and lower lows while compressing within the formation. If the asset breaks above the upper trendline with strong volume, it could validate Moon’s $56 target.
What you'll learn 👉
Key AVAX Price Levels to Watch
AVAX faces multiple resistance levels before reaching the projected price target. The first key level to break is around $45, followed by $50. A successful move past these thresholds would strengthen bullish momentum, with $59.48 emerging as a major resistance zone.
On the downside, AVAX’s lower boundary of the falling wedge, near $32, acts as a strong support level. A failure to maintain this range could open the door for a decline toward $28 or lower. Traders are monitoring these levels closely to confirm the asset’s next move.
As per CoinGecko, AVAX has fallen by 0.83% in the last 24 hours and 2.60% during the day week. Despite this temporary decline, the trend indicates a possible shift in direction.
Volume remains a key factor in confirming a breakout. An increase in trading activity alongside a daily close above the wedge could solidify the bullish outlook. AVAX is currently in a consolidation phase, and an upward move would align with its prior impulsive rallies.
Read also: TRUMP Meme Coin Could Be Ready for Another Rally as Key Indicator Turns Bullish
AVAX’s Path Toward $56
With AVAX approaching a crucial breakout point, traders are watching for confirmation signals. If buying pressure increases, the asset could see a sharp rally toward $56, reflecting a potential 59% gain from current levels.
However, a rejection at resistance could push the price lower, with $32 serving as a critical support zone. For now, all eyes are on AVAX’s price action, as a decisive move could set the stage for the next significant rally.
Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.
Get all our future calls by joining our FREE Telegram group.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
