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Avalanche (AVAX) is gaining bullish momentum after days of market uncertainty and fear. After a sharp decline, Avalanche shares have risen more than 18% since hitting a low of $20.5 on September 6, and are now showing signs of strength as they approach higher prices.
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This recovery has sparked optimism among major investors and analysts, many of whom are preparing for the next potential rally. Analysts are sharing their views on social media, suggesting that AVAX could soon target higher levels, with an optimistic target above $28.
This shift in sentiment represents a significant change from previous bearish expectations as AVAX continues to attract the attention of both retail and institutional players. As the market evolves, all eyes are on Avalanche to see if it can sustain this upward momentum and reach new price levels.
Avalanche shows strength in higher time frames
Avalanche (AVAX) has been one of the most affected altcoins over the past few months, suffering a 73% drop from its March highs. Despite this significant drop, major analysts and investors are now anticipating a reversal, with many predicting a quick recovery for this layer-one chain.
One of the leading voices is Dan, a prominent cryptocurrency trader and investor, who recently Share your analysis He noted that AVAX stock price has made a higher low, which could signal the start of an uptrend if it breaks the key resistance level at $28.
According to Dan’s analysis, this breakout signals a shift in the market structure from bearish to bullish. If the price moves beyond $28, it could quickly target the lower price range at $30.
If AVAX reclaims these levels, investors could expect a strong upward move as demand builds, similar to the momentum seen in the October and November rally last year. Dan also noted that such a move could lead to an influx of buyers, creating significant demand that would push the price higher.
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With the bullish sentiment on AVAX stock growing, traders are keeping a close eye on the possibility of a breakout. Many see the $28 level as the critical point that will determine whether AVAX stock can sustain this upward momentum and start a new bull run.
AVAX Price Action
AVAX stock is trading at $23.82, up 18% from its local lows. The price recently moved above the 4-hour exponential moving average (EMA) at $23.23, an important strength indicator in shorter time frames.
A sustainable uptrend could be formed in the short term when the price is above this level and remains as support. This shift has sparked renewed optimism among traders and investors.
For bulls to maintain control and continue pushing AVAX higher, the price must clear the local high at $28.01. A successful move above this resistance could lead to further upward momentum, potentially targeting higher price ranges in the coming days.
However, if AVAX fails to break above this key resistance level, the price could face a pullback, and a retest of the lower demand area near $20, which has acted as strong support during recent corrections, is likely.
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These price movements are being closely watched as they could determine whether AVAX will continue its recovery or face another decline. Investors are waiting to see if AVAX can break through the resistance and start a stronger rally.
Featured image by Dall-E, chart by TradingView