The Avalanche (AVAX) price trend has taken a promising turn as it approaches a significant resistance range between $7.80 and $8.00. This critical juncture coincides with the round bottom formation’s neckline and important moving averages. Currently, AVAX has slightly dipped by 0.37% over the past 24 hours, trading around $7.40.
Staying Above Crucial Thresholds?
AVAX is testing two vital technical barriers, drawing market watchers’ attention. The technical analyst CryptoGuerrilla highlights that AVAX aims to surpass both the 21-week and 200-day moving averages. These indicators converge in the $8.00 region, marking it as pivotal for a broader recovery.
CryptoGuerrilla emphasizes, “AVAX’s attempt to reclaim the 21-week and 200-day moving averages could suggest this area is a key confirmation zone for recovery.”
Could $10.60 Be Within Reach?
Daily charts suggest that AVAX, after establishing a base around $6, might have formed a rounded bottom. The price’s slow climb is now testing the resistance in the $7.80 to $8.00 range.
As per polaris_xbt, “Should this zone be overcome, the rounded bottom pattern could be complete, and $10.60 will emerge as the next major target.”
For this bullish scenario to hold, support in the $7.10 to $7.20 range must remain intact. A dip below this could weaken current breakout attempts. Conversely, sustaining above $8 could accelerate the recovery.
Long-Term and Broader Projections?
Longer-term projections suggest that AVAX might be nearing the end of a broader corrective structure. An Elliott Wave analysis lays out recovery milestones at $28.51, $35.56, $42.60, and $52.62. However, these targets are not expected to be reached imminently without first overcoming the $8 to $10 range.
Mini glossary: Elliott Wave analysis is a technical approach that interprets market movements with recurring wave structures, helping investors predict potential correction and rally phases.
Network Data Supports Price Trends
Beyond technical indicators, Avalanche’s ecosystem growth offers positive signals. Known for its high transaction capacity and subnetwork structure, the blockchain’s total value locked is around $480 million, while its stablecoin supply has reached $1.35 billion. The robust attendance at the Summit NYC event further indicates sustained ecosystem activity.
Short-term focused resistance is centered around $7.80 to $8.00. Overcoming this could elevate AVAX toward $10.60, while losing support around $7.10 to $7.20 might increase the risk of reverting to the $6.00 to $6.20 base region.
