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Avalanche (AVAX) is gaining bullish momentum after several days of market uncertainty and fear. After a sharp decline, AVAX has surged more than 18% since hitting a low of $20.5 on September 6, and is now showing signs of strength as it approaches higher prices.
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This recovery has created optimism among top investors and analysts, many of whom are bracing for the next potential rally. Analysts have shared their views on social media, suggesting that AVAX could soon be targeting higher levels, with an optimistic target being $28 and above.
This change in sentiment represents a significant shift from the previous bearish outlook as AVAX continues to attract the attention of retail and institutional players. As the market evolves, all eyes will be on Avalanche to maintain this bullish momentum and reach new price levels.
Avalanches that show intensity on higher time frames
Avalanche (AVAX) has been one of the most impacted altcoins in the past few months, falling 73% from its March high. Despite this significant drop, major analysts and investors are now predicting a reversal, with many expecting a quick recovery for this layer 1 blockchain.
One of the key voices is Daan, a renowned crypto trader and investor, who recently shared his analysis of AVAX’s price structure on X. He emphasized that AVAX has established higher lows and a break above the key $28 resistance level could signal the start of a bullish trend.
According to Daan’s analysis, this breakout indicates that the market structure has shifted from bearish to bullish. If the price breaks above $28, it can quickly target the low $30 range.
If AVAX recovers this level, investors can expect an aggressive upside move as demand increases, similar to the momentum seen in the October-November surge last year. Daan also noted that this move could create significant demand, leading to an influx of buyers, which could push prices higher.
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As bullishness grows for AVAX, traders are keeping an eye on a potential breakout. Many see the $28 level as a critical point to determine if AVAX can maintain its upward momentum and potentially start a new rally.
AVAX Price Action
AVAX is trading at $23.82 after a 18% surge from its local low. The price recently crossed the 4-hour 200 exponential moving average (EMA) of $23.23, which is an important strength indicator on shorter time frames.
If the price breaks above this level and remains as support, a sustained uptrend may form in the short term. This development has created new optimism among traders and investors.
For bulls to maintain control and continue to push AVAX higher, the price needs to break the local high of $28.01. A successful break above this resistance level could lead to greater upside momentum, and it is likely that the price will target a higher price range in the coming days.
However, if AVAX fails to break this key resistance level, the price is likely to move lower and retest the low demand zone near $20, which acted as strong support during the recent correction.
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This price action is being watched closely as it could determine whether AVAX continues its recovery or faces another downtrend. Investors are watching to see if AVAX can break through resistance and start a stronger rally.
Featured image from Dall-E, chart from TradingView