Avalanche (AVAX) crypto is drawing significant attention as analysts suggest a bullish setup on the weekly chart, with a possible price target of $240.
This optimism is driven by a Cup and Handle pattern identified by the analyst best_analysts, which often signals a long-term upward trajectory.
Meanwhile, short-term trade strategies highlight potential opportunities within current price levels.
Cup and Handle Pattern on Weekly Chart
Best analysts have suggested that Avalanche crypto is in the process of forming a Cup and Handle pattern, which is bullish.
The “cup” is an intermediate accumulation phase that is defined on the weekly chart by a rounded bottom.
This phase shows further improvement and continuing upward trend as well as increasing confidence of investors.
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The ‘handle’ phase, a short term consolidation, frequently precedes a break out. The handle seems to be at the final stage, indicating a bullish breakout.
If this setup is valid, then AVAX price could be on its way to hit a long-term target of $240.
Moving Averages and Fibonacci Levels
This can be seen from the fact that key moving averages are pointing towards the upside. The Avalanche crypto price is above the 200 -Week Moving Average a crucial long-term support trend line.
Also, 50-Week Moving Average is below the price indicating that short term bullish trend remains intact.
Fibonacci retracement levels also indicate major levels of resistance and support. The 0.618 level at $48 and the 1.00 level at $60 are critical resistances before the price can begin its ascent to $240.
The 0.5 retracement level at $36.84 has acted as a strong support to the upward trend, strengthening the bullish outlook.
Avalanche Crypto Short-Term Trade Strategy
Analyst ValeriyaApex also presents a short-term trade setup for traders in the 4-hour order block, where institutional players are likely to set the trend.
The order block is a crucial area that indicates previous possible reversals, and therefore buyers may return.
The analyst has observed internal liquidity collection which means market makers may hold positions.
In addition, the liquidity shelf has emerged that may help the Avalanche crypto price to stabilize in the short term.
From the trade, the entry may be taken near $36.71, with a stop loss order set at $33.588 in order to protect against loss at the downside.
The take profit levels to be set are at $38.294, $40.400 and $45.061 which are major resistance levels of potential gains.
Current Avalanche Crypto Price Performance
As of now, AVAX price has been under pressure and declined by 5.64% to trade at $35.86.
Avalanche crypto price started the day just above $38.00 and then proceeded to drop gradually. The market is probing for near-term support near $35.50, which would help to prop up the market if there is a let up in selling pressure.
The market cap has fallen to $14.72 billion, a 5.56% decline, while 24-hour trading volume has also fallen by 33.98% to $558.86 million.
This reflects a lack of strong buying interest a situation that has been compounded by the price weakness.
This could be due to the general negative market sentiment towards bearish markets in the cryptocurrency industry.
This means that few people are actively participating in the market which simply worsens the situation.
Evidence of liquidity constraints is the lack of buyers willing to buy when others are selling.
However, the current circulating supply of AVAX has reduced to 410.56 million tokens with a total token supply of 448.89 million tokens.
This is because the circulating supply is rather high, and demand has recently been somewhat dampened.
Key Levels to Watch
Any support around $35.50 is going to be important for AVAX to avoid more losses. In case this level is breached, the price may find the next support at $34.00.
For AVAX price to reach bullish momentum again, it has to break past the resistance levels of $37.00 and $38.50.
While AVAX has been trading within these levels the possibility of more buying signals, such as the Cup and Handle pattern or institutional accumulation, is still on the radar.
