The Avalanche (AVAX) Price Soars to New Highs
The price of Avalanche (AVAX) has experienced a rapid increase, reaching a new yearly high of $38. With no significant resistance above the current price, the question remains how long this upward trend will continue.
AVAX Breaks Out From 750-Day Resistance
In the weekly time frame, AVAX has been on a steady rise since October, culminating in a new yearly high. During this increase, AVAX broke out from a 750-day descending resistance trend line that had been in place since its all-time high.
The Role of RSI in Determining Market Conditions
Using the RSI as a momentum indicator, traders can assess whether a market is overbought or oversold and make decisions accordingly. Currently, the RSI for AVAX is increasing and above 50, indicating bullish sentiment. Despite being overbought, there are no signs of a bearish divergence yet.
What Analysts Have to Say
Traders and analysts are impressed with AVAX’s ongoing price rally. One analyst noted the breakout from the current horizontal level and set the next resistance at $53. Another analyst highlighted a long-term ascending support trend line near $55.
AVAX Price Prediction: Potential Targets
Based on technical analysis using the Elliott Wave theory, AVAX is currently in the fifth and final phase of its upward movement. The daily RSI supports this optimistic outlook, indicating a bullish trend. The projected target for the peak of this movement is $44, with a potential further target at $58.
Hot Take: AVAX’s Bullish Run May Face Resistance
While the AVAX price prediction is bullish, a failure to break out from the $44 resistance area could result in a 40% decrease and a local top being established at the $22 support area.
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