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Avalanche has seen a staggering 25% surge since Wednesday, fueled by the Federal Reserve’s announcement of a 50 basis point interest rate cut. This has pushed Avalanche to a critical resistance level, which is likely to shape its price action in the coming weeks. The coin is currently trading near $28, testing a key supply area that has analysts and investors paying close attention to its next move.
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Many market participants are optimistic, expecting that a break above this resistance level will pave the way for a sharp rise in the price of AVAX. This is likely to push AVAX into a new uptrend, which could lead to new highs and even a 50% surge for the token. However, if Avalanche fails to break this level, it risks a pullback that could see the price retest previous support levels.
Analysts are highlighting this moment as crucial in determining the direction of the AVAX market, as broader crypto sentiment has turned more bullish following the recent Fed decision. With increased trading volume and investor interest, the next few days will be key in determining whether Avalanche can maintain its momentum or face a short-term correction.
Avalanche testing of key supply levels
Avalanche has been one of the best performing altcoins in recent days, showing impressive strength amid a broader market rally. This recent momentum could be just the beginning of a more significant move for AVAX, with analysts and investors anticipating even bigger gains if the token continues to break through key supply levels.
Carl Ronfleet, one of the most respected figures in the crypto space, shared a bullish opinion. Avalanche Stock Technical Analysis on Xindicating that AVAX has broken out of a falling wedge pattern, a classic indicator of bullish price action.
According to his analysis, AVAX has successfully retested the wedge and is now targeting medium-term price levels. Runefelt’s price targets for AVAX are $28, $33, $41.30, and $54, each of which represent critical supply zones that the coin must surpass to continue its upward trajectory. If AVAX reaches $41.30, it will reflect a 50% upside from its current price, indicating a significant advance.
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Currently, Avalanche has formed a new high, confirming its strength. While the price may consolidate before making its next move, many investors believe that this consolidation could serve as a stepping stone towards a larger rise.
With broader market sentiment turning positive following the recent interest rate cut by the Federal Reserve, AVAX stock is well positioned to continue its upward trajectory, especially as more investors look to take advantage of its strong technical setup.
If AVAX can maintain this momentum, it could lead to significant gains in the medium term.
Price levels to watch
AVAX is currently trading at $27.39 after testing the 200-day exponential moving average (EMA) at $28.66. The coin has seen a staggering 40% surge since early September, pushing it closer to crucial supply levels that are likely to shape price action in the coming weeks.
For bulls to maintain momentum and extend the rally, AVAX stock needs to break the $28 resistance level and reclaim the 200-day EMA as support. Doing so would signal a more sustainable uptrend and put AVAX stock in a position to post further gains.
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However, if the price struggles to hold the $25 level, a deeper correction could follow, bringing short-term bearish pressure. Despite this risk, there is still a chance that AVAX will consolidate between $25 and $28, giving the token room to gather strength for a bigger rally in the near future. Investors are closely watching these levels as the market looks for direction.
Featured image by Dall-E, chart by TradingView