Avalanche (AVAX) Price Climbs 90% in November — Bullish Formation Points to $134

Key Takeaways

• Avalanche (AVAX) has reached the $47 resistance area.
• The AVAX price trades 25% under its yearly high.
• Can AVAX maintain its momentum and break out?

The Avalanche (AVAX) price regained its footing in November, increasing by 90% and breaking from a long-term diagonal resistance trend line. The upward movement took the AVAX price to the $47 resistance area.

If AVAX breaks out, it will likely accelerate its rate of increase because there is little resistance ahead for a while. Let’s dive deep into the AVAX price movement and see if this will be the case.

AVAX Reaches Resistance

The weekly time frame AVAX chart shows that the price has increased alongside an ascending support trend line since September. After the third bounce in November 2024 (white icon), AVAX created four successive bullish weekly candlesticks.

It is creating the fifth one this week, leading to a high of $49.15.

AVAX has reached the $47 horizontal resistance area, the final one before the yearly high of $65.39.

Even though the rally since November has not experienced any pullbacks, technical indicators do not even show overbought conditions.

On the contrary, the Relative Strength Index (RSI) broke out from its bearish divergence trend line and is above 50. The Moving Average Convergence/Divergence (MACD) has made a bullish cross above 0.

Neither has it generated any weakness nor has it reached overbought territory. So, the weekly time frame suggests AVAX will break out and reach a new yearly high.

AVAX Yearly High

The wave count aligns with the weekly time frame readings, giving a bullish AVAX prediction. The most likely count suggests that AVAX is in a bullish trend, either in wave C (black) or wave three of a long-term five-wave increase (white).

Both counts give a bullish outlook for the future, so the short-term movement will be the same in either case.

The first target for the top of the increase is at $134, giving waves A:C the same ratio. If the upward movement is a five-wave increase, AVAX can reach $205 since wave three often has 1.61 times the length of wave one.

The short-term outlook is also bullish. It shows that AVAX is in wave three of a five-wave increase, which will complete the long-term count. The sub-wave count is in black, showing an extension of wave three.

Wave three could end at $74.70, taking the AVAX price to a new yearly high. The 3.61 extension of wave one finds the target. Afterward, a correction could ensue.

The daily time frame RSI is overbought but has not generated any bearish divergence yet, a sign that the increase could continue.

Then, the entire five-wave increase could conclude at the previously outlined target of $134.

Rally Heating Up

The AVAX price increased rapidly in November and is approaching its yearly high.

AVAX trades at an important horizontal resistance area at $47, a breakout above which could trigger a rapid upward movement. A new yearly high is likely, and AVAX could increase to $134.