Avalanche (AVAX) has recently emerged as a prominent player in the cryptocurrency market, breaking out past a multi-month descending channel and clearing a significant resistance zone around $24. This pivotal moment suggests that AVAX could be poised for a substantial price rally, potentially flipping the $24 area into a demand zone that could ignite further gains.
The Breakout And Price Targets
A recent market analysis indicates that this breakout could lead to astonishing gains of up to 100%, setting a bold price target of $71 within the coming months. However, traders should be aware of key resistance levels that could act as obstacles before reaching this target. Notably, the weekly and 3-day charts reveal a crucial resistance zone that may impede buyer momentum.
On the daily chart, AVAX displays a bullish market structure, supported by a strong Relative Strength Index (RSI) that has not yet shown signs of divergence—a typical precursor to price reversals. This bullish momentum suggests that the market is primed for upward movement.
Key Levels to Watch
For traders, specific price levels are critical. The $33 mark is noteworthy, as it coincides with a bearish breaker block on the 3-day timeframe, establishing it as a formidable resistance area. Meanwhile, the $23.3 to $26 range is identified as a bullish order block, further reinforcing the significance of the $24 region.
A retest of the $24 area could provide swing traders with an attractive buying opportunity. Additionally, the On-Balance Volume (OBV) has been trending higher over the past month, indicating a solid bullish strength in the market.
Shifting Market Sentiment
Market sentiment around AVAX has begun to shift positively. Open Interest has seen an upward trend throughout September, reflecting increased confidence among speculators eager to take long positions. This readiness is fueled by the steady price gains AVAX has achieved in recent weeks.
Interestingly, social media engagement had been relatively negative for a significant portion of the past month, but signs of a turnaround have emerged. Increased social volume and positive sentiment are emerging as September progresses, suggesting that investor confidence is on the rise.
Also Read: Avalanche (AVAX) Surges 13.68% – Bullish Triangle Pattern Points To $40 Target
Another encouraging indicator for AVAX is the steady development activity observed since July. While there has been a slight decline in activity since the second week of September, the overall trend points towards sustained interest from long-term investors. This continued commitment to development could strengthen the ecosystem and support future price growth.
As Avalanche (AVAX) navigates this critical juncture, the combination of bullish technical indicators, supportive trading volumes, and shifting market sentiment paints a promising picture for the token’s future. With a potential target of $71 on the horizon, traders and investors alike are closely monitoring this breakout for opportunities to capitalize on the upward momentum. Will AVAX flip the $24 resistance into a demand zone and embark on a rally toward its ambitious target? Only time will tell, but the signs are increasingly favorable for this rising cryptocurrency star.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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