AVAX, the native token of the Avalanche protocol, is poised for a potential price breakout after another week of volatile trading. Mirroring a broader crypto market rally, the altcoin initially climbed to $14.85 before pulling back below $13.50. Analyst Ali Martinez suggests AVAX is now at a critical juncture, with its next move likely to set the short-term trend.
Why AVAX Needs to Break Through $14.83
In a recent analysis shared on X, Martinez highlighted a key resistance level and a significant chart pattern on AVAX’s 12-hour chart. The token’s recent rejection near $14.85 is linked to strong resistance in that area. Notably, AVAX has failed to break past the $14.83 barrier three times in the past month, suggesting many investors are eager to sell when the price approaches this zone. This could be due to traders seeing it as a good point to take profits or anticipating a drop based on past performance.
Martinez’s analysis also points out that AVAX’s price action has formed an inverse head and shoulders pattern, which typically signals a bullish trend reversal. This pattern features three troughs: a left shoulder (a price decline and rebound), a deeper head (a drop to around $11.26 followed by a recovery), and a right shoulder (a higher low near $13.75). The rebound highs are connected by a resistance line, or neckline, at $14.83.
For a bullish breakout to occur, Martinez explains that AVAX must decisively push above this neckline. If it does, the initial price target is $17.59. With continued buying pressure, the analyst forecasts a further rise to $18.41, representing a potential 35% gain from current levels.
AVAX Market Snapshot
As of now, AVAX is trading at $13.61, down 1.19% over the past day and 1.34% over the past week. However, it shows a monthly gain of 14.67%, hinting at a possible trend reversal after a negative performance in the last quarter of 2023.
Frequently Asked Questions
FAQs AVAX Approaching 18 Resistance Level
Beginner Questions
What is AVAX
AVAX is the native cryptocurrency of the Avalanche blockchain a platform for decentralized applications and custom blockchain networks
What does key resistance level mean
A resistance level is a price point where an asset has historically struggled to rise above due to increased selling pressure Think of it as a price ceiling
Why is 18 specifically important for AVAX right now
According to an analyst 18 is a price level where past selling has occurred making it a psychological and technical barrier Breaking above it could signal stronger bullish momentum
What happens if AVAX breaks above 18
If it breaks and holds above 18 it could indicate a potential trend reversal or continuation upward possibly attracting more buyers
What happens if AVAX fails to break 18
It might experience a price pullback or consolidation as selling pressure outweighs buying pressure at that level
Is this a good time to buy AVAX
This is not financial advice Price predictions are speculative Always do your own research and consider your risk tolerance as crypto markets are highly volatile
IntermediateAdvanced Questions
What technical indicators are analysts likely watching alongside this resistance
They are likely monitoring trading volume moving averages and momentum oscillators to gauge strength
How does broader market sentiment affect AVAXs attempt to break resistance
AVAX often correlates with the overall crypto market If Bitcoin is strong it can provide a tailwind If Bitcoin faces resistance or sells off it can make AVAXs breakout harder
Whats the difference between resistance and support
Resistance is a price ceiling where selling tends to increase Support is a price floor where buying tends to increase 18 is acting as resistance
Could this be a bull trap or fakeout
Yes Sometimes the price briefly breaks resistance only to fall back below it quickly trapping bullish traders Sustained volume and price action above the level are key to confirming a real breakout
Are there any onchain metrics supporting this price move
Analysts might look