Avalanche (AVAX) is showing strong bullish momentum after breaking out of a crucial cup-and-handle pattern, with analysts projecting a potential 30% rally ahead. The cryptocurrency has already surged nearly 40% over the past week, reaching a three-month high of $26.84.
Technical Analysis Points to $32 Target
After reclaiming the critical $23 resistance level, AVAX has broken free from its five-month downtrend that saw the asset retrace over 73% from its Q4 2024 peak. The recent breakout coincides with a textbook cup-and-handle pattern formation, suggesting further upside potential.
Analyst Sjuul from AltCryptoGems notes that the pattern provides a “super clean” target around the $32 mark – a crucial support/resistance zone from early 2025. This potential 30% move higher aligns with broader market recovery signals, as recent data shows altcoin momentum building across the crypto market.
Key Resistance Levels Ahead
Multiple resistance levels lie ahead for AVAX, with analyst CW identifying key sell walls at $27, $36, and $38.5. An additional resistance zone exists between $42.5-$46.5. However, if rejection occurs at current levels, support around $20 could provide a foundation for future moves.
Five-Stage Cycle Analysis
Crypto Amsterdam’s analysis suggests AVAX is following a similar pattern to Solana’s recent breakout structure, currently entering stage four of a five-part market cycle. This could potentially lead to a retest of previous all-time highs near $146 if the pattern continues to play out.
FAQ
Q: What is the immediate price target for AVAX?
A: The immediate target is $32, representing a 30% increase from current levels.
Q: What are the key support levels to watch?
A: The main support level is around $20, with the recent breakout level at $23 serving as secondary support.
Q: What could invalidate the bullish setup?
A: A break below the local bottom and failure to hold the $20 support would invalidate the current bullish structure.