The price of Avalanche (AVAX) has been on an upward trend, forming eight positive candlesticks in the last nine weeks and breaking a long-standing resistance. Both weekly and daily indicators suggest that this upward trend may persist. The overall wave count also aligns with a positive outlook.
However, it’s essential to note that if AVAX fails to close above the $44 resistance, it could signal the end of the upward movement despite the optimistic price predictions.
The price of Avalanche (AVAX) started going up again this week, hitting a new highest point for the year at $42.90. AVAX is getting closer to reaching the $50 level, a milestone not seen since May 2022.
AVAX Technical Analysis: Breaking Trends and New Highs
Analyzing the weekly timeframe, the AVAX price has been on the rise since October, marked by the creation of eight positive weekly candlesticks in the past nine weeks. The ongoing upward trend reached a milestone this week, pushing AVAX to a new yearly high of $42.90.
Significantly, during this surge, AVAX broke free from a long-standing descending resistance trend line that had persisted for 750 days. This breakout accelerated the growth rate, resulting in a bullish candlestick with a substantial 70% magnitude.
AVAX/USD Weekly Chart. Source:Ā TradingView
To gauge market momentum, traders often turn to the Relative Strength Index (RSI). With readings above 50 and an upward trend, it suggests an advantage for the bulls. Conversely, readings below 50 indicate the opposite. While the RSI currently signals overbought conditions, there is no bearish divergence in place, supporting the ongoing positive momentum.
Bullish Sentiments and Price Targets for AVAX
Cryptocurrency traders and analysts are expressing bullish sentiments regarding the future price trend of AVAX. AlienOPS has identified his initial area of interest at $55, intending to sell his holdings at this level. Similarly, JJCycles shares a comparable target of $53, aligning with positive expectations for AVAX’s trajectory. Solstice sets a slightly lower target at $50 for AVAX.
$avax – update of "weekly accumulation phase"š§©
holding my bags since $8-10 and starting to sell off soon. (eazy 4-5x)
*also remember people who give you the dip price!-support me with this link, %20 discount for #AlienTeamš½ https://t.co/zKPof9ZG9Q
*posted all details hereā¦ https://t.co/aOIos54iCY pic.twitter.com/uCD3hPfAzE
— Alien OPS | (@alienopstrading) December 12, 2023
Adding to the optimistic outlook, Rune draws attention to the significant size of the AVAX blockchain, likening it to the stature of Solana (SOL). These positive assessments collectively contribute to the prevailing optimism surrounding AVAX’s potential for future growth.
Elliott Wave Analysis: AVAX Potential for Further Upside
The application of Elliott Wave theory involves a thorough examination of recurring long-term price patterns and investor psychology to decipher the trajectory of a trend. Currently, on the daily time frame, AVAX is positioned in what seems to be the fifth and final wave of a five-wave upswing that initiated in October.
A crucial observation indicates that the length of wave five has reached 0.618 times the combined length of waves one and three. This suggests that AVAX might be nearing a potential top in its current cycle. However, it’s noteworthy that the daily Relative Strength Index (RSI) hasn’t exhibited any bearish divergence yet. Instead, it has broken out from its previous bearish divergence trend line.
The prospect for further upside becomes significant if the AVAX price manages to break above the $44 level. In such a scenario, a potential 50% increase could lead AVAX to the next resistance at $59. This milestone would not only mark a new yearly high for AVAX but would also align with wave five matching the combined length of waves one and three.
Important:Ā Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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