Avalanche (AVAX) surges 30% in a week as analyst predicts bullish continuation

Avalanche (AVAX) is currently trading at $26.42, after an impressive 30% increase from the $20 mark to $27.

Following a steep correction since its peak in March, Avalanche has been relatively quiet and has underperformed other stronger altcoins. However, Avalanche is gaining momentum and analysts and investors are sharing crucial data that points to a potential rally in the coming months.

This renewed optimism suggests that Avalanche could be on the verge of a significant breakout, so the market needs to be watched closely.

Avalanche rally on the horizon

Avalanche is generating a lot of buzz among investors and analysts who anticipate a possible rebound from its current level to new highs.

Prominent cryptocurrency analyst and investor Allincrypto recently shared a detailed graph in Xwhich provides a technical projection of AVAX’s next significant move. The chart highlights AVAX’s price action since the last bull run, underlining the importance of the $20 price level. This level was a major resistance point several months before the latest rally. Still, recent price action has confirmed it as solid support after a successful retest in recent weeks.

The technical outlook suggests that Layer 1 (L1) could be on the verge of a major upward move, similar to the rally it experienced between October 2023 and March of this year. In this period, AVAX achieved remarkable gains of over 600%, and many in the cryptocurrency community believe that current market conditions could lead to a similar (or greater) outcome.

A combination of strong technical indicators and growing investor confidence fuels the anticipation. With Avalanche holding firmly above its previous resistance and turning it into support, the path seems clear for a fresh rally that could propel Avalanche to new highs. The next few weeks will be crucial in determining whether AVAX can maintain this momentum and meet the bullish expectations set by the crypto community.

AVAX marks $27 and surpasses the local maximum

Yesterday, AVAX rose to $27 following enthusiasm sparked by comments from Federal Reserve Chairman Jerome Powell, who suggested a possible change in policyand investors now expect a 25 basis point interest rate cut on September 18. This announcement fueled optimism across the cryptocurrency market, driving AVAX to this price level.

However, after reaching $27, AVAX started consolidating below this price and is currently trading at $26.35. This consolidation comes after it successfully broke above the previous high of $22.8, which indicates strength and targets the next major resistance at $33.

For AVAX bulls, maintaining momentum above $27 is crucial to sustain the rally. However, if the price fails to hold and consolidate above this level, the anticipated rally may be further delayed as it is yet to recover above the 200 daily moving average, a crucial indicator to confirm an uptrend. Sustaining above this moving average would indicate that Avalanche is on a solid path to further gains, but until then, the market remains cautious.