Is $30 The Next Target?

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Avalanche (AVAX) is trading around $25 after a 10% surge since last Thursday as the broader cryptocurrency market shows signs of recovery. Bitcoin and most altcoins are on track to rally from their yearly lows, with AVAX hitting a critical price level that could shape its price action in the coming weeks.

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Analysts and investors are closely watching the situation, expecting significant volatility in Avalanche stock. Many are calling for a possible change in trend, and some are predicting a sharp and strong rally if Avalanche stock can break its weekly bearish structure.

However, this volatility could also lead to downside risks if key support levels are lost. The next few days will be crucial in determining whether AVAX stock can capitalize on the market momentum or face further turmoil.

A change in the collapse trend will lead to higher prices.

The market has reached a turning point, with previously fearful investors beginning to feel encouraged by recent price action. Avalanche (AVAX) shares have surged 25% from their local lows since September 6, and are now trading at a key level that could determine their price direction for the coming months.

This crucial level has caught the attention of analysts and investors alike, especially one prominent analyst, Dan, who shared: Technical insights on X.

AVAX is trying to break out of the downtrend channel. | Source Dan on X AVAXUSDT chart on TradingView

In his analysis, Dan points to a well-defined downward channel that has kept AVAX stock in a downtrend for several months. However, AVAX stock is now trying to break out of this downward channel, a move that could signal the end of its bearish phase.

If AVAX stock manages to break through the $25 resistance level, Dan expects the price to move quickly towards $28. This breakout represents a major trend shift in the short to medium term, which could turn market sentiment around and set the stage for further upside.

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A successful breakout is likely to spark a fresh wave of buying pressure, with analysts expecting a strong rally towards $30 or higher in the coming weeks. The next few days will be crucial, and any failure to break the resistance could see AVAX fall back into the downtrend channel, retesting lower support levels.

AVAX Price Action: Key Levels to Watch

AVAX stock is trading at $25.04 after a 4-hour uptrend, marked by higher highs and higher lows. The positive move came after a breakout of the 4-hour 200 exponential moving average (EMA), which AVAX successfully tested as support last Thursday, indicating short-term strength. The move has encouraged bullish sentiment among traders.

AVAX stock is in an uptrend on the 4-hour timeframe supported by the 200 EMA as support. | Source: AVAXUSDT chart on TradingView

The next major challenge for AVAX stock is to break the resistance level at $28. Doing so would confirm a more significant uptrend and signal a change in structure on higher timeframes, which could pave the way for higher prices in the coming weeks.

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However, if AVAX fails to sustain its position above the 4-hour 200 EMA, which is currently at $23.5, the price could face deeper volatility or correction, with a potential test of lower demand levels.

Featured image by Dall-E, chart by TradingView

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