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Avalanche (AVAX) Hits New Yearly High at $42.90 – What’s the Next Price Target?

3 mins
Updated by Ryan Boltman
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In Brief

  • The Avalanche (AVAX) price has created eight bullish candlesticks in the past nine weeks, clearing a long-term resistance.
  • Indicators in the weekly and daily time frames both support the continuing of the increase. The wave count is also bullish.
  • Despite the bullish AVAX price prediction, failure to close above the $44 resistance will mean the upward movement is done.
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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.

Avalanche (AVAX) Price Movement
AVAX/USD Weekly Chart. Source: TradingView

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.

Avalanche (AVAX) Price Movement
AVAX/USDT Weekly Chart. Source: X

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).

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.

Avalanche (AVAX) Price Prediction
AVAX/USDT Daily Chart. Source: TradingView

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.

For BeInCrypto’s latest crypto market analysis, click here.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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