With Bitcoin and altcoins aiming for a comeback week, Avalanche nears a trendline breakout. Will the short-term recovery propel altcoin above the local supply line and hit the $30 mark?
By Vishal Dixit
Edited by Julia Sakovich
Updated
3 mins read
As the crypto market anticipates an upcoming altcoin season, cryptos like Avalanche AVAX $20.20 24h volatility: 0.8% Market cap: $8.41 B Vol. 24h: $338.74 M are aiming for a bullish comeback. As the AVAX price trend sustains dominance above its critical support level, analysts are anticipating a breakout rally.
Will this breakout rally in Avalanche lead to a price surge and fuel the next crypto bull market? Let’s find out.
In the 4-hour price chart, the Avalanche price trend has surpassed a local resistance trendline. This marks a bullish breakout of a descending triangle pattern, which previously followed a bearish trend.
With the breakout rally, the AVAX price trend is aiming to challenge the 23.6% Fibonacci level at $26.65. Currently, AVAX trades at $25.48, with a bullish recovery in the momentum indicators.
The MACD and signal lines are on a positive journey, aiming to reach the halfway level. Meanwhile, the positive histograms are maintaining a steady flow, signaling growing bullish momentum.
Furthermore, the 4-hour RSI line has bounced off from extremely oversold regions to the midline, marking a significant recovery in buying strength. Amid the positive technical signals, the Fibonacci levels paint a price target at the 38.2% level at $28.49. This marks the previous high before the descending triangle formed.
Completion of the reversal run to $28.49 will confirm a rounding bottom reversal, significantly increasing the upside potential to $37.82. On the flip side, the key support levels for AVAX stand at $24 and $22.60.
Highlighting a similar descending triangle pattern, crypto analyst Ted Pillows suggests a potential reversal run in Avalanche. With three consecutive bullish candles, the AVAX price trend has held its ground at a crucial support zone.
Avalanche is still holding its support zone.$AVAX buyers are stepping in which is a good sign.
All I need now is a 4H close above $26 and AVAX will run hard 🚀 pic.twitter.com/fdwJEqzKeJ
— Ted (@TedPillows) February 10, 2025
With the short-term recovery, the analyst anticipates a breakout run if AVAX sustains a four-hour closing above $26. Ted Pillows’ price target for Avalanche extends to nearly $30, signaling a strong breakout opportunity.
Despite the short-term recovery, the overall AVAX holdings by investors have significantly declined since early February. Based on IntoTheBlock’s balance-by-holding indicator, a major shift in large holdings has occurred.
Investors holding over $10 million worth of Avalanche have offloaded $780 million, dropping holdings from $2.29 billion to $1.51 billion. Meanwhile, holdings between $1 million to $10 million have dropped slightly to $557 million from $559 million.
This marks a lesser decline in mid-level holdings, compared to whale movements. The overall AVAX holdings have dropped from $3.62 billion to $2.66 billion, reflecting a bearish sentiment among large investors.
Based on IntoTheBlock data, the Global In-Out-Of-Money Indicator reveals a stronger supply zone forming near Avalanche. The immediate supply zone exchanges between $25.78 and $27.98, holding 6.2 million AVAX tokens.
However, the short-term recovery has reached the upper boundary of the At-The-Money zone, which exchanges between $23.41 and $25.78. This zone contains 15.31 million AVAX tokens, now turning almost completely profitable.
As the At-The-Money zone flips bullish, the AVAX rally is likely to extend and challenge immediate resistance. Hence, the On-Chain Indicator pins the next price targets at $27.91, followed by a crucial supply zone up to $35.21.
On the flip side, key support levels stand at $23.41 and $21.38.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
