Avalanche (AVAX) retraced all of the Sept. 22 crypto crash.
The AVAX price trades inside the $36 horizontal resistance.
Can AVAX finally break out and move to a new cycle high?
After coiling below resistance for a long time, AVAX broke out at the beginning of September, increasing by more than 40% in two weeks.
While the AVAX price fell yesterday, it has already recovered all of its losses and hit new highs today.
Assets that perform well during dips are often the first to go up once the market stabilizes.
With that in mind, let’s analyze the AVAX price action to determine what lies ahead.
Why is AVAX Going Up?
The weekly time frame shows how interesting AVAX’s price movement has been this week.
After breaking out above the $26.50 resistance, AVAX quickly surged to the $36 level.
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Then, this week, the AVAX price validated the $26 area (green icon) as support while reaching $36 once more.
If Avalanche breaks out, the diagonal resistance at $40 will provide the next resistance.
Both these levels have existed for a long time. The $36 area has been in place for 238 days, while the diagonal resistance has been in place for nearly 18 months.
So, a breakout from them could lead to a parabolic rally toward a new cycle high.
Besides the extremely bullish price action, momentum indicators indicate new highs ahead.
The Relative Strength Index (RSI) is above 50 while the Moving Average Convergence/Divergence (MACD) is positive.
So, the Avalanche prediction is bullish. The price will break out above $36 and possibly the diagonal resistance.
Parabolic Rally Incoming
The daily time frame wave count shows that AVAX has completed an extremely bullish 1-2/1-2/1-2 wave formation and is currently in its most parabolic portion.
Additionally, Avalanche created an extremely bullish hammer candlestick yesterday, with a massive long lower wick and a bullish close.
If the count is accurate, AVAX will increase to $48.22 without suffering a significant pullback, giving wave three (green) 2.61 times the length of wave one.
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.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
