Avalanche has approached a pivotal resistance level that could shape its next price movement. Prominent analyst World of Charts revealed on X that AVAX’s price is rebounding strongly after testing a key support area. He highlighted the potential for a substantial rally if the cryptocurrency manages to break through the multi-year trendline resistance at $48-$50. Paired with an analysis of the AVAX price chart, this suggests that traders are monitoring its next move.
What you'll learn 👉
Avalanche Chart Analysis: Key Chart Patterns and Current Trends
The AVAX price chart reveals a multi-year symmetrical triangle pattern, indicating sustained consolidation within a defined range. This formation, typically associated with potential breakout scenarios, has seen the price repeatedly test its upper and lower boundaries. After being rejected at the triangle’s upper resistance line during a previous rally, AVAX has rebounded from a support zone around $9-$10.
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Smaller patterns within the chart, such as cup-and-handle formations, suggest growing bullish sentiment. These patterns, often seen as reversal indicators, align with the broader trend that shows AVAX attempting to break through critical resistance zones. The rising trendline also reinforces the strength of the support level.
AVAX Support and Resistance Levels in Focus
Support for AVAX’s price has been consistently found near the $9-$10 range. This area has served as a foundation for upward movements, supported by a rising trendline that has held firm during market declines.
On the upside, resistance lies between $48 and $50, marked by a multi-year trendline that has historically hindered further growth. A breakout above this zone could unlock significant upward momentum, with the potential for exponential price increases in the months ahead.
Furthermore, World of Charts emphasized the importance of the $48-$50 resistance area, noting that its clearance could lead to a threefold increase in AVAX’s value within a few months. The mention of previous rejection at this level underscores its importance as a pivotal point for the cryptocurrency. Additionally, the tweet highlights the bullish sentiment surrounding the recent bounce from the support zone, suggesting optimism among traders.
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Potential for a Bullish Rally
The chart and the tweet highlight AVAX’s current position at a decisive juncture. While the multi-year trendline resistance presents a challenge, its breach could lead to a substantial rally. The cryptocurrency market can be unpredictable, and Avalanche is currently in a holding pattern. The price might stay within its current trading range for now.
Investors and traders are keeping a close eye on this cryptocurrency, watching for any signs of a potential price movement. Market indicators and trading volume will be key signals of whether the price of Avalanche might break out of its current trend.
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