The Avalanche (AVAX) price increased swiftly in December, reaching a new yearly high of $38 yesterday.
There is no definite horizontal resistance above the current AVAX price. How long will it increase?
AVAX Breaks Out From 750-Day Resistance
AVAX broke out from a 750-day descending resistance trend line during the increase, which had previously been in place since the all-time high.
With the RSI as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset.
Bulls have an advantage if the RSI reading is above 50 and the trend is upward, but if the reading is below 50, the opposite is true. The RSI is increasing and is above 50. Despite being overbought, there are no signs of a bearish divergence yet.
What Do Analysts Say?
JJJCycles noted the breakout from the current horizontal level and drew the next important resistance at $53.
Crypto Ryan tweeted that the price has increased by over 150% since his previous call. He noted a long-term ascending support trend line near $55.
Shuarix is also bullish. He suggested that:
$AVAX #Avalanche price is likely to break the resistance line if this kind of recent volume is getting back. In the past 42 days it had a 180% increase, like lots of coins that are recovering. Right now, a small correction of a positive impulse, we might see another push.
AVAX Price Prediction: Can Price Reach $60?
Technical analysts utilize the Elliott Wave theory to ascertain the trend’s direction by studying recurring long-term price patterns and investor psychology.
Based on the daily time frame, the probable scenario indicates that AVAX’s price is currently in the fifth and final phase of its upward movement, which was initiated in October.
The daily RSI, which is rising and above 50, supports this optimistic outlook and has broken free from its bearish divergence trend line (green). These factors are indicative of a bullish trend.
Should the upward momentum persist, the anticipated target for the peak of this movement is $44. This projection involves wave five being 0.618 times the combined length of waves one and three, requiring a 20% increase in AVAX’s price.
If wave five extends further, there is a potential target at $58, aligning with the same length as waves one and three combined. This target is 60% above the current price.
Despite this bullish AVAX price prediction, failure to break out from the $44 resistance area will mean the local top is in. This can lead to a 40% decrease in the $22 horizontal support area.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.