Avalanche (AVAX) stands out as one of the altcoins that has performed well recently. Avalanche price continued its rise this week, reaching a yearly high of $42.90. The altcoin is approaching the $50 level, which has not been reached since May 2022.
Within the framework of technical analysis, AVAX has increased since October. Additionally, this week, the upside hit a new yearly high of $42.90.
During the rally, AVAX broke out of the long-term descending resistance trend line that has been in place for 750 days. This further accelerated the growth rate and created a bullish candlestick of 70% magnitude.
RSI is a momentum indicator that investors use to evaluate whether a market is overbought or oversold and whether an asset should be accumulated or sold.
Readings above 50 and an uptrend indicate that the bulls still have the advantage, while readings below 50 indicate the opposite. The indicator is overbought, but there is no downtrend.
What Do Analysts Say?
in x cryptocurrency traders and analysts are bullish on the future AVAX price trend.
AlienOPS said his initial interest was the $55 he would unload his bags.
Solstice has a $50 target on AVAX, while JJCycles has a similar target of $53. Finally, Rune noted that the AVAX blockchain is as large as Solana’s (SOL).
AVAX Price Forecast: Is Price Nearing a Top?
Elliott Wave theory involves analysis of recurring long-term price patterns and investor psychology to determine the direction of a trend.
The daily time frame count shows that AVAX is in the fifth and final wave of a five-wave rise that began in October. AVAX price may be approaching a top as the fifth wave has 0.618 times the combined length of the first and third waves.
However, the daily RSI has not yet created any downtrend. On the contrary, the previous downtrend broke out of the trend line. Therefore, if AVAX price rises above the $44 level, it could rise 50% and reach the next resistance at $59. This would be a new AVAX annual high, giving the fifth wave the same length as the first and third waves combined.
Despite this bullish AVAX price prediction, a rejection from the $44 resistance area would mean that the upward move is complete. This could lead to a 45% decline in the $22 horizontal support area.