Avalanche has seen a remarkable 25% increase since Wednesday, following the Federal Reserve’s announcement of a 50 bps interest rate reduction. This has propelled AVAX to a significant resistance level, which is expected to influence its price movements in the weeks ahead. Currently trading around $28, the token is navigating a vital supply area, attracting keen attention from analysts and investors regarding its next steps.
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A number of market players are optimistic, anticipating that a move above this resistance could facilitate a sharp increase in AVAX’s price. Such a breakthrough would likely initiate a fresh uptrend for AVAX, possibly leading to new highs and even a 50% price surge. Conversely, if Avalanche cannot overcome this level, it may face a pullback, revisiting earlier support zones.
Analysts view this juncture as critical in determining AVAX’s market trajectory, particularly as the general sentiment in the crypto space has become increasingly bullish following the Federal Reserve’s latest decision. With a rise in trading volume and investor interest, the forthcoming days will be pivotal in establishing whether Avalanche can maintain its momentum or will undergo a temporary correction.
Avalanche Approaching Key Supply Zones
Avalanche has emerged as one of the leading altcoins in recent times, showing notable resilience within a broader market rally. This recent momentum may signal the onset of a more substantial movement for AVAX, as analysts and investors foresee even larger gains if the token breaks through critical supply levels.
Renowned crypto analyst Carl Runefelt shared a bullish technical analysis of Avalanche on X, indicating that AVAX has broken out of a falling wedge pattern, a traditional sign of bullish price behavior.
His analysis indicates that AVAX has successfully retested the wedge and is now setting sights on medium-term price objectives. Runefelt’s targets for AVAX are $28, $33, $41.30, and $54, each representing significant supply zones that the token must clear to maintain its upward trajectory. If AVAX reaches $41.30, it would mark a 50% increase from its current price, showcasing considerable advancement.
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At this moment, Avalanche has established a new high, confirming its strength. Although the price may stabilize before making its next move, many investors believe that such consolidation could serve as a foundation for a larger upward movement.
Given the improved market sentiment following the recent Federal Reserve interest rate cut, AVAX is poised for further climbs, especially as more investors seek to capitalize on its robust technical setup.
If AVAX can preserve this momentum, it could potentially result in substantial medium-term gains.
Price Levels To Monitor
AVAX is currently trading at $27.39 after engaging with the daily 200 exponential moving average (EMA) at $28.66. The token has achieved an impressive 40% gain since early September, moving closer to significant supply levels that are likely to guide its price trajectory in the weeks ahead.
To keep the momentum and extend the rally, AVAX needs to surpass the $28 resistance and secure the 1D 200 EMA as support. Achieving this would indicate a more sustained upward trend and set AVAX up for additional gains.
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Nonetheless, if the price struggles to maintain levels above $25, it could face a deeper correction, resulting in short-term bearish influences. Despite this potential drawback, there is the possibility for AVAX to consolidate between $25 and $28, providing it with the opportunity to build strength for a more significant surge ahead. Investors are closely monitoring these levels as the market looks for guidance.
Featured image from Dall-E, chart from TradingView
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