The Avalanche (AVAX) price resumed its increase this week, reaching a new yearly high of $42.90.
AVAX is approaching the $50 level, which has not been reached since May 2022.
Avalanche Breaks Out from Long-Term Resistance
The technical analysis from the weekly time frame shows that the AVAX price has increased since October, creating eight bullish weekly candlesticks in nine weeks. This week, the upward movement led to a new yearly high of $42.90.
During the increase, AVAX broke out from a long-term descending resistance trend line, which had been in place for 750 days. This accelerated the rate of growth further, creating a bullish candlestick with a 70% magnitude.
The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset.
Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite. The indicator is overbought, but there is no bearish divergence in place.
What Do Analysts Say?
Cryptocurrency traders and analysts on X are bullish on the future AVAX price trend.
AlienOPS said his first area of interest is $55, where he will unload his bags.
JJCycles has a similar target of $53, while the Solstice has a target of $50 for AVAX. Finally, Rune noted that the AVAX blockchain is as large as that of Solana (SOL).
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AVAX Price Prediction: Is Price Approaching a Top?
Elliott Wave theory involves the analysis of recurring long-term price patterns and investor psychology to determine the direction of a trend.
The daily time frame count suggests that AVAX is in the fifth and final wave of a five-wave increase that began in October. The AVAX price may be approaching a top since wave five has had 0.618 times the length of waves one and three combined.
However, the daily RSI has not generated any bearish divergence yet. Rather, it broke out from its previous bearish divergence trend line. So, if the AVAX price breaks out above the $44 level, it can increase by 50% and reach the next resistance at $59. This would be a new AVAX yearly high and would give wave five the same length as waves one and three combined.
Despite this bullish AVAX price prediction, a rejection from the $44 resistance area will mean the upward movement is complete. This can lead to a 45% decrease in the $22 horizontal support area.
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