After falling below $15, AVAX rebounds 15%, and indicators now suggest an extended rally | Credit: Hameem Sarwar
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Key Takeaways
AVAX price broke above a falling wedge, typically a bullish pattern signaling potential trend reversal.
The RSI is above 50.00, indicating increasing momentum, and the MACD shows a bullish crossover.
If the bullish trend continues, AVAX’s price might reach $23.50 and rise to $30.42.
Avalanche (AVAX) is the 12th most valuable cryptocurrency in market cap. Its price has increased by 15%, but last Monday, it slipped below the $15 mark.
However, the altcoin briefly jumped above $20 this week before a slight retracement. Despite the minor pullback, several indicators and some bearish patterns suggest that AVAX’s market value might continue climbing.
Here are the key levels to watch and possible price targets if the bullish outlook holds in the short term.
Bearish Channel Broken
On the daily chart, AVAX’s price experienced a downturn from $45 in January to $15 earlier this month. This decline led to the formation of a falling wedge.
A falling wedge is a bullish pattern that typically signals a potential trend reversal to the upside — though it can also form an uptrend as a continuation pattern.
It appears when two downward-sloping trendlines converge. The upper trendline represents resistance and narrows alongside the lower one (indicating support).
As seen below, AVAX’s price has broken above the upper trendline, indicating that sellers are losing momentum. If sustained, and the altcoin fails to fall back into the price levels within the wedge, a sustained uptrend could be next.
Following this breakout, the Relative Strength Index (RSI) reading has climbed above the 50.00 midpoint. The RSI measures momentum using the size and speed of price changes.
Beyond that, CCN looked at the Moving Average Convergence Divergence (MACD). The MACD helps identify the strength and direction of a trend, as well as potential buy and sell signals based on crossovers and divergences.
It also tracks the difference between two exponential moving Averages (EMAs), typically the 12-period EMA and the 26-period EMA.
A bullish crossover occurs when the MACD line crosses above the signal line. On the other hand, a bearish Crossover shows up when the MACD line crosses below the signal line.
The 12 EMA (blue) has crossed above the 26 EMA (orange) on the daily chart. If this trend continues, AVAX’s price might hit a higher level in the coming weeks.
AVAX/USD Moving Average Convergence Divergence | Credit: TradingView
AVAX Price Analysis: Higher Values Possible
Regarding its short-term outlook, CCN noticed that the Awesome Oscillator (AO) reading has climbed to the positive region. The rise in the AO reading indicates bullish momentum.
If sustained, the next target for AVAX’s price could be run to $23.50 at the 0.786 Fibonacci level.
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.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
