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Avalanche (AVAX) is currently trading around $25 after experiencing a 10% surge since last Thursday. This rise comes as the broader crypto market shows signs of recovery. Bitcoin and most altcoins are trending upward from their yearly lows, placing AVAX at a critical price level that could shape its future price action in the weeks to come.
Analysts Predict Potential Volatility for Avalanche
Both analysts and investors are closely monitoring AVAX, anticipating significant volatility. Many experts are predicting a potential change in trend, with some projecting a sharp and aggressive rally if AVAX manages to break its weekly bearish structure. However, this volatility could also pose downside risks if key support levels are lost. The next few days will be crucial in determining whether AVAX can capitalize on market momentum or face more turbulence.
Avalanche Change Of Trend Could Lead To Higher Prices
The market appears to be at a turning point. Previously fearful investors are now feeling more encouraged by recent price actions. Avalanche (AVAX) has surged by 25% from its local lows since September 6 and is currently trading at a critical level that could determine its price direction for the coming months.
This pivotal level has caught the attention of both analysts and investors, including a prominent analyst named Daan, who shared his technical insights on X.
In his analysis, Daan highlights a well-defined bearish channel that has kept AVAX in a downtrend for several months. However, AVAX is now attempting to break out of this descending channel, a move that could signal the end of its bearish phase.
If AVAX successfully breaks the $25 resistance level, Daan predicts the price could quickly move towards $28. This break would represent a significant shift in the short- to mid-term trend, potentially flipping market sentiment and setting the stage for more upside.
A Potential Rally on the Horizon
A successful breakout would likely ignite a fresh wave of buying pressure, with analysts projecting an aggressive rally towards $30 or higher in the coming weeks. The next few days will be crucial, and any failure to break resistance could see AVAX fall back into the bearish channel, retesting lower support levels.
AVAX Price Action: Key Levels To Watch
Currently, AVAX is trading at $25.04 after a sustained 4-hour uptrend marked by higher highs and higher lows. This positive movement followed a break past the 4-hour 200 exponential moving average (EMA), which AVAX successfully tested as support last Thursday, signaling short-term strength. This move has bolstered bullish sentiment among traders.
The next key challenge for AVAX is to break through the $28 resistance level. Achieving this would confirm a more significant uptrend and signal a change in structure on higher timeframes, potentially setting the stage for even higher prices in the coming weeks.
However, if AVAX fails to maintain its position above the 4-hour 200 EMA, currently at $23.5, the price could experience increased volatility or a deeper correction, with lower demand levels likely being tested.
Conclusion: As Avalanche (AVAX) navigates through these critical levels, investors and analysts alike are keenly observing its movements. The forthcoming days will be pivotal in determining whether AVAX can sustain its upward momentum or face further challenges.
