Avalanche (AVAX) price continued its rise this week, reaching a new yearly high of $42.90. AVAX is approaching the $50 level, which has not been reached since May 2022.
Avalanche Breaks Out of Long-Term Resistance
Technical analysis from the weekly timeline shows that the AVAX price has been rising since October, creating eight bullish weekly candlesticks in nine weeks. This week, the bullish move led to a new yearly high at $42.90.
During the rise, it broke out of the 750-day long-term falling resistance trend line. This further accelerated the growth rate and created a 70 percent bullish candlestick.
RSI is a momentum indicator that traders use to assess whether a market is overbought or oversold and whether they should accumulate or sell an asset.
Readings above 50 and an upward trend indicate that the bulls are still at the advantage, while readings below 50 indicate the opposite. The indicator is in overbought condition, but there is no bearish divergence in place.
What Do Analysts Say?
Cryptocurrency traders and analysts are optimistic about the future trend of the price.
AlienOPS has stated that its initial interest is $55, where it will empty its wallet.
JJCycles is targeting a similar target of $53, while Solstice has a $50 target for AVAX. Finally, Rune noted that the AVAX blockchain is as large as Solana (SOL).
AVAX Price Forecast: Is Price Nearing the Top?
Elliott Wave theory is used to determine the direction of a trend by analyzing recurring long-term price patterns and investor psychology.
The daily timeline count shows that the cryptocurrency is in the fifth and final wave of a five-wave rise that began in October. The price may approach the top as the fifth wave reaches 0.618 times the sum of waves one and three.
However, the daily RSI has not yet formed any bearish divergence. On the contrary, the previous bearish divergence broke out of the trend line. Therefore, if the cryptocurrency price rises above the $44 level, it could rise 50 percent and reach the next resistance at $59. This will be a new annual peak, making the sum of wave five and wave three the same length.
Despite this optimistic AVAX price prediction, a rejection from the $44 resistance zone would mean that the upward move is complete. This could lead to a 45 percent decline in the $22 horizontal support zone.