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Avalanche Price Reversal Hints at Further Upside Potential — Can AVAX Hit $30 Next?

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Nikola Lazic
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Key Takeaways

  • AVAX has gained over 27% since its low on Aug. 5.
  • Higher low and high suggest a potential new bull phase.
  • Reversal is likely confirmed with AVAX, targeting $28-$30.

Avalanche’s AVAX token has shown positive signs since its Aug. 5 low of $17.50, gaining over 27% by Aug. 8.

On its subsequent downturn, it held above, effectively leaving a higher low of $20 on Aug. 16 and continuing its upward trajectory, making a higher high of $23.70 today, Aug. 21. 

Considering that we’ve seen a higher low and a higher high, this could be an early sign of a starting bull phase for AVAX.

AVAX Price Analysis

After reaching a peak of $65 on March 18, AVAX‘s price experienced a sharp decline to $30 by April 13, leading to 55 days of horizontal trading.

This consolidation phase ended with a breakout above the $30 mark, reaching $41 on May 22. Since then, the price has been in a downtrend, potentially making its final move to the downside.

AVAX
AVAXUSD | Credit: Nikola Lazic/Tradingview

The $65 high marked the end of a significant uptrend that began at $9 in October of the previous year. It formed part of a five-wave impulse within a larger bull cycle, which then transitioned into a correction phase. 

Analyzing the wave structure suggests AVAX  likely ended its C wave in a corrective ABC pattern on the Aug. 5 low.

The daily chart’s RSI reached the oversold zone at 25%, indicating that the low was in. In addition, the daily chart MACD formed a golden cross on Aug. 17, confirming the starting uptrend. 

Is a Reversal Confirmed?

If AVAX is still starting a new five-wave uptrend, we have already seen its first two sub-waves develop until Aug. 18, when its next upward advancement began. If our count is correct, this is wave 3, potentially bringing AVAX to $28 at the 1.618 Fibonacci extension level. 

AVAX
AVAXUSD | Credit: Nikola Lazic/Tradingview

A bullish reversal will be confirmed if this develops as a stronger move than a previous one. In that case, Avalanche will have one more higher high ahead as it should complete a five-wave pattern. Its target is $30, which could vary depending on the momentum. 

Alternatively, we would need to reevaluate our projection if the price finds resistance below $25 and sends AVAX back to $20. 

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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