Avalanche (AVAX) has staged a notable recovery, pushing its price toward the $7.80 to $8.00 zone and attracting attention to a key area of technical resistance. This region aligns with both t
Avalanche (AVAX) has staged a notable recovery, pushing its price toward the $7.80 to $8.00 zone and attracting attention to a key area of technical resistance. This region aligns with both the neckline of a rounded-bottom formation and a convergence of major moving averages. According to data from Brave New Coin, AVAX was recently trading around $7.40, down 0.37% in the last 24 hours.
AVAX now approaches an important technical threshold where the 21-week and 200-day moving averages intersect. Noted crypto analyst CryptoGuerrilla commented that AVAX is attempting to surpass these averages, both positioned near the $8 mark.
CryptoGuerrilla noted that AVAX is now attempting to reclaim both the 21-week and 200-day moving averages, placing the token at a significant technical confirmation zone as it seeks to confirm a broader recovery.
On the daily chart, the 200-day moving average sits close to the $8 region, while the weekly timeframe sees the 21-week moving average converging in the same area. This overlap sets up a strong resistance cluster, which must be cleared to confirm a sustained uptrend for AVAX.
Historically, a decisive move above both moving averages has marked a shift in trend structure. Currently, AVAX still faces the task of breaking and maintaining a position above this resistance zone.
Chart analysis shows AVAX forming a rounded-bottom pattern after several months consolidating near $6. The price has trended higher, now testing resistance in the $7.80 to $8.00 zone. Trader polaris_xbt identifies $10.60 as the next significant upside target should AVAX secure a confirmed breakout.
polaris_xbt explained that a breakout above the rounded-bottom neckline at $7.80–$8.00 could quickly open room for further gains towards $10.60, provided AVAX maintains support above $7.10–$7.20.
This setup remains valid as long as AVAX stays above the $7.10–$7.20 range. A drop below this support could undermine the recovery, while strength above $8 might provide the momentum needed to pursue $10.60.
A long-term Elliott Wave analysis suggests AVAX may be concluding a W-X-Y-Z corrective pattern near the bottom of a multi-year descending channel. Projections suggest a possible recovery first toward $28.51, then $35.56, $42.60, and potentially as high as $52.62 if momentum shifts.
These higher targets require AVAX to establish a sustained breakout above the $8 to $10 area. Only a confirmed move above this level would set the foundation for a larger rally into the higher projected ranges.
Further out, FLN’s charting places potential cycle highs at $236.76, $379.81, and up to $583.94 across future market cycles. These levels are long-term projections and far from current price action.
Mini dictionary: Elliott Wave – a technical analysis theory used to predict future price movements by identifying wave-like patterns in market charts.
Avalanche’s technical outlook coincides with continued growth in its ecosystem. The sold-out Avalanche Summit NYC reflected ongoing expansion, and the network’s total value locked (TVL) stands near $480 million, while stablecoin supply has reached approximately $1.35 billion.
Strong network activity and stablecoin liquidity underscore persistent development within the Avalanche ecosystem, even as the token’s price remains well below previous highs.
Mini dictionary: Avalanche – a decentralized smart contract platform designed to launch decentralized applications and custom blockchain networks, known for its high throughput and low-latency consensus protocol.
MetricCurrent ValueAVAX Price$7.40Total Value Locked (TVL)$480 millionStablecoin Supply$1.35 billionNear-term, the $7.80–$8.00 zone represents the most significant resistance cluster, combining the rounded-bottom neckline and intersecting moving averages. A clear breakout above $8 could quickly open up $10.60 as the next target.
Should the positive momentum persist, higher levels at $28.50 and $35.50 may eventually come into play. On the downside, failure to hold the $7.10–$7.20 support increases the risk of a return to the broader $6–$6.20 base region.
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