The price of the cryptocurrency Avalanche (AVAX) continued its rise this week, reaching its highest level of the year at $42.90. AVAX is moving towards the $50 level, which has not been seen since May 2022.
According to technical analyses, the price of AVAX has been on the rise since October and this is reflected in the charts. Eight bullish candlesticks formed in the last nine weeks, and the price action has gained incredible momentum. This week, the rise reached the highest level of the year.
In addition to the price increase of AVAX, it broke the resistance of the descending trend that lasted 750 days, accelerating the upward momentum and resulting in a 70% bullish candlestick.
The RSI indicator is used to evaluate whether a market is overbought or oversold and even whether an asset is being accumulated. If RSI is above 50, it indicates an upward trend, and if it’s below 50, it indicates a downward trend. For AVAX, the RSI indicates overbuying and, for now, no downward trend is observed.
Cryptocurrency analysts, investors, and commentators support the continuation of the bullish market trend for AVAX. While some analysts suggest that investors might sell around $55 following the initial rise, others set a $50 price target for AVAX.
AVAX may be experiencing the fifth and final wave of the five-wave rally that began in October. The daily timeframe suggests that the AVAX price might be on its peak journey. The daily RSI, contrary to the previous downward trend, appears to have broken out of the trend line created by the prior downward trend, and if the AVAX price exceeds $44, it is predicted that the price could increase by 50%, reaching the next resistance level of $59.