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Avalanche Price Breaks Consolidation Triangle — New AVAX Yearly High Above $65 Next?

Last Updated May 21, 2024 12:40 PM
Nikola Lazic
Last Updated May 21, 2024 12:40 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Avalanche consolidated before breaking $40 resistance.
  • Horizontal trading hints at a potential AVAX uptrend.
  • Meanwhile, a breakout above $40 signals bullish momentum.

Since April 13, when a 55% downfall ended, Avalanche has been consolidating around $35. On May 15, it fell to $31, again retesting its lower bound. As it found support, a bounce took place, with the price increasing past the $40 resistance, finally escaping this zone. 

Avalanche (AVAX) Price Analysis 

After reaching a high of $65 on March 18, AVAX began to decline, dropping by 55% to a low of $30 on April 13. The price then entered a period of sideways movement, lasting 36 days. This horizontal trading could be a positive indicator, especially since it has now made a breakout above. 

AVAX price chart
AVAXUSD | Credit: Nikola Lazic/Tradingview

The peak in March marked the end of an uptrend that started at $9 in October 2023. This was part of a five-wave impulse in a likely larger bull cycle that shifted into its corrective stage.

While AVAX remains within this horizontal trading range, a breakout above $40 would serve as a definitive signal of upward momentum. Until such a breakout happens, further declines may occur, but the overall outlook remains bullish.

Avalanche (AVAX) Price Prediction

As this symmetrical triangle is broken on its upper side, there are two possibilities ahead. It could be that AVAX began a new bull phase leading to a new all-time high. On the other hand, it still might be a corrective stage with another larger drop ahead. 

If the price continues moving upward and climbs above $50, forming a higher low on the downturn, that will be a leading indicator that it is in a new uptrend. 

AVAX
AVAXUSD | Credit: Nikola Lazic/Tradingview

However, if AVAX  moves back to $30, that would mean buyers don’t have the strength to push the price higher. In that case, a drop of the same magnitude as the one from its peak to April 13 would be like, with a target of about $23. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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