Is AVAX on the Verge of a Major Rally? | Credit: Hameem Sarwar
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Key Takeaways
Avalanche (AVAX) trades inside a long-term descending parallel channel.
The AVAX price is attempting to reclaim the $20.50 horizontal area.
Has AVAX started its bullish trend reversal, and if so, what are the next targets?
After a steep 70% correction, Avalanche (AVAX) shows strong signs of recovery.
The price has reclaimed a critical horizontal level and broken out from a long-term descending channel.
With momentum indicators turning positive and bullish patterns emerging across the USD and BTC pairs, AVAX may have started its next major uptrend.
AVAX’s Bullish Reclaim
The AVAX price has fallen since its cycle high of $65.38 in March 2024, accelerating its decline after a failed breakout attempt in December.
Avalanche’s next downward movement was swift, triggering a 70% drop until April 2025.
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However, the trend shifted afterward, and AVAX bounced, confirming a descending parallel channel and starting an upward trend.
Besides validating the channel, the bounce confirmed an A-B-C structure in which waves A and C have the same length. All these signs indicate that the AVAX price correction may be over.
Last week, AVAX increased above the $20.50 horizontal area. Confirming the reclaim will be an extremely bullish development, since the area has acted as resistance and support for several years.
A bullish AVAX price prediction only needs confirmation from momentum indicators. While the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are increasing, they are below their bullish thresholds.
However, if the AVAX price continues to increase, the indicators will cross into bullish territory and confirm the trend reversal.
Let’s analyze the price action and see if that is likely.
Can AVAX Break Out?
The daily time frame AVAX price analysis shows a breakout from a descending resistance trend line, which ended the short-term correction.
While this is a positive sign, the failure to move above the 0.5 Fibonacci retracement resistance at $21.22 is worrying since this area often acts as the top if the bounce is corrective.
However, the AVAX price has completed a W-X-Y correction (red) between May and June, so the breakout is likely the start of a new impulse.
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.
