AVAX Price Gives Bullish Signal Ahead of Avalanche Summit — Here’s What to Expect

Key Takeaways

• The Avalanche (AVAX) summit started today, on May 20.
• The AVAX price might have completed a long-term correction.
• Can Avalanche’s price continue its ascent to new highs in 2025?

Avalanche (AVAX) has increased by 50% since April, preventing a breakdown from the $20 horizontal support area and reclaiming it in May.

Avalanche news in May is positive, since the network has revealed several partnerships and numerous on-chain metrics have hit new highs.

The Avalanche Summit starts today, and could bring more positive AVAX news.

With that in mind, let’s examine the AVAX movement and predict the next price.

Avalanche Activity Grows

Earlier this week, the Avalanche team announced that the number of Active addresses in the network has surpassed 2 million, a new all-time high. 

The high interest in the network shows despite the declining AVAX price since March 2024.

One reason for this could be the launch of MapleStory on Avalanche, a free-to-play game with over 180 million users.

Pixelmon has also announced plans to launch its mobile game on AVAX.

Beyond gaming, Avalanche is also progressing in Decentralized Finance (DeFi).

Securitize announced the integration of its BUIDL fund on Avalanche, while Solv Protocol is partnering with Avalanche to bring Real-World-Asset (RWA) yield to Bitcoin.

Furthermore, the AVAX price has regained its footing since April, reclaiming key horizontal levels.

AVAX Price Prevents Breakdown

The weekly time frame analysis shows that AVAX has increased since bouncing at the support trend line of an ascending parallel channel in April (green icon).

The bounce was critical because it validated the support area and prevented a breakdown in the $20 horizontal area.

After increasing in May, the AVAX price reclaimed the $20 area and confirmed it as support.

It currently attempts to move above the channel’s midline (red icon), which would further confirm the bullish trend.

AVAX could increase the channel’s resistance trend line to $43 if that happens.

Despite the bounce, technical indicators do not confirm the bullish trend reversal.

While the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are increasing, neither has crossed into bullish territory.

Therefore, looking at the wave count can help determine if the bullish trend reversal has started.

AVAX Price Correction Over

While the price action is still unclear, the wave count gives a bullish AVAX prediction.

The most likely count shows a completed A-B-C correction (red) where waves A and C have the same length.

On top of the textbook proportionality, the channel movement and reclaim of the $20 area align with the completed correction.

If the count is accurate, AVAX has started a new upward movement, which could lead to a high of $112 if it has the same length as the previous one.

AVAX has to stay above the $20 horizontal support area for this count to remain valid.

New Highs in 2025

The AVAX price has surged since April, based on positive news and increasing network activity.

Announcements in the ongoing Avalanche summit could also positively affect the AVAX price.

AVAX reclaimed the $20 horizontal area, which has been critical for the past two years.

The wave count suggests AVAX has started a bullish trend reversal, taking it to a new cycle high.