Key Takeaways:
- AVAX price rallied over 20% and broke the $25.00 resistance.
- A key contracting triangle is forming with resistance near $27.00 on the daily chart.
- The current price action suggests a fresh uptrend which could send Avalanche toward $35.
Avalanche (AVAX) is gaining pace above $22.00 and $25.00. The bulls seem to be in control, and they might aim for a surge toward $35.00.
Avalanche Price Rally Gathers Momentum
In the past few days, there has been a strong increase in Bitcoin and Ethereum. BTC cleared the $40,000 and $42,000 resistance levels to set the pace for a larger increase. It lifted the market sentiment and altcoins such as DOGE, SOL, and AVAX gained traction.
Avalanche formed a base above the $15.00 level before it started a strong increase. There was a move above the $20.00 resistance zone and the 50-day simple moving average (blue). The last 3-4 candles were all bullish, suggesting a steady increase.
Avalanche price is up over 20% in the past few sessions, and it broke the $25.00 resistance. A new multi-month high was formed near $26.99, and the price is now consolidating gains.
There is also a key contracting triangle forming with resistance near $27.00 on the daily chart. If there is a downside correction, AVAX might find support near the $25.20 level or the 23.6% Fib retracement level of the upward move from the $19.51 swing low to the $26.99 high.
The first major support is now forming near the triangle trend line at $23.25. It is also close to the 50% Fib retracement level of the upward move from the $19.51 swing low to the $26.99 high.
If the bulls fail to protect a close below the triangle support, the price might decline heavily. In the stated case, it could revisit the $20.00 support zone or the last swing low at $19050. Any more losses could send AVAX toward the $17.50 level or the 50-day simple moving average (blue).
More Upsides in AVAX
Conversely, Avalanche might continue to move up. On the upside, immediate resistance is near the last swing high at $26.99 or the triangle trend line. A close above the $27.00 zone could set the tone for a fresh surge.
In the stated case, AVAX might rally over 25% and minimum test the $35.00 level. The next major resistance is near the $36.80 level. Any more gains might open the doors for a move toward the $40.00 resistance.
Recently, Jay Kurahashi-Sofue shared Avalanche Ecosystem Stats, highlighting that over 1 billion total transactions were completed and over 2.8 million AVAX were burned.
Overall, AVAX price is gaining pace above the $25.00 level. The current price action is positive, suggesting a fresh upward move toward the $35.00 level. If not, there could be a downside correction toward $23.25 or even $20.00.
