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Avalanche has had an impressive 25% increase since Wednesday, driven by the Federal Reserve’s announcement of a 50 bps interest rate cut. This has pushed AVAX to a critical resistance level, which is likely to shape its price action in the coming weeks. Currently trading close to $28, the token is exploring the main supply zone with analysts and investors paying close attention to its next move.
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Many market participants are optimistic, predicting that a break above this resistance could pave the way for a sharp rise in the price of AVAX. This may push AVAX into a new uptrend, possibly leading to new highs and even a 50% surge in the token. However, if the Avalanche fails to break through this level, it risks a reversal that could see prices retest previous support levels.
Analysts highlight this period as crucial in determining the direction of the AVAX market, as broader crypto sentiment has become more bullish following the Federal Reserve’s recent decision. With increasing trading volume and investor interest, the next few days will be key in determining whether the Avalanche can maintain its momentum or face a short-term correction.
Avalanche Test Key Supply Standards
Avalanche has been one of the best-performing altcoins in recent days, showing incredible strength amid a market boom. This latest push could be just the beginning of a more significant move for AVAX, as analysts and investors predict even bigger gains if the token continues to break through key supply levels.
One of the most respected figures in the crypto space, Carl Runefelt, shared a technical analysis of Avalanche on X, stating that AVAX has broken out of a falling pattern, a classic indicator of bullish price action.
According to his analysis, AVAX has successfully retested the center and is now heading towards medium-term price levels. Runefelt’s price targets for AVAX are $28, $33, $41.30, and $54, each representing key supply areas that the token needs to pass through to continue its upward trajectory. If AVAX reaches $41.30, it will represent a 50% upside from its current price, marking significant progress.
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Currently, Avalanche has made a new high, confirming its strength. Although the price may consolidate before taking the next step, many investors believe that this consolidation could be a stepping stone towards a bigger rally.
With broader market conditions turning positive after the Federal Reserve’s recent interest rate cuts, AVAX is well positioned to continue its gains, especially as more investors look to take advantage of its strong technical setup.
If AVAX can maintain this momentum, it could lead to significant gains in the medium term.
View Price Levels
AVAX is currently trading at $27.39 after testing the daily 200 exponential moving average (EMA) at $28.66. The token has experienced an impressive 40% surge since early September, bringing it closer to key supply levels that are likely to shape price action in the coming weeks.
For the bulls to maintain momentum and extend the rally, AVAX needs to break the $28 resistance and reclaim the 1D 200 EMA as support. Doing so will show a steady rise and position AVAX for more gains.
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However, if the price struggles to hold above the $25 mark, a deep correction can follow, bringing temporary bearish pressure. Despite this risk, there is still a chance for AVAX to consolidate between $25 and $28, giving the token a place to gather power for a more significant surge in the near future. Investors are watching these levels closely as the market looks for direction.
Featured image from Dall-E, chart from TradingView