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Avalanche (AVAX) has made a major move, breaking above a crucial resistance level and rising more than 20% in less than 24 hours. This rise has reignited bullish sentiment among analysts and investors, who are now keeping a close eye on AVAX’s potential to hit the key $50 mark in the coming days. The outbreak signals a shift in market dynamics, with rising demand and growing optimism fueling price action.
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Prominent analyst and crypto investor Kaleo shared a detailed technical analysis on X, suggesting that once AVAX crosses the $50 level, it could trigger a massive rally. He emphasized the importance of this psychological and technical level as a gateway to exponential price growth, potentially attracting more momentum-driven buyers.
Avalanche’s recent performance reflects the broader strength of the crypto market, as major altcoins experience renewed interest amid a bullish cycle. With market conditions now aligned, AVAX could continue its upward trajectory if it remains above its current levels. However, traders are also cautious and aware of possible profit-taking or resistance around the $50 threshold.
Avalanche prepares for a meeting
Avalanche is on the cusp of a huge rally and is closely following a pattern reminiscent of the last bullish cycle. The price has risen above key supply levels with impressive strength and is now less than 15% away from the critical $50 mark. This level has caught the attention of traders and analysts alike as a breakout above it could signal the start of an aggressive bullish phase.
Kaleo recently shared a technical analysis on Xhighlighting the importance of the $50 level. According to Kaleo, breaking this psychological and technical barrier could trigger a powerful rally, potentially doubling AVAX’s value in a short time.
He also highlighted the AVAXBTC chartwhich shows a similar breakout pattern, confirming the bullish sentiment around Avalanche. Kaleo predicts that AVAX could quickly reach $100 if momentum continues.
Despite the optimism, the potential for a market-wide correction brings some caution. With Bitcoin showing signs of possible retracement to consolidate and gather momentum, AVAX may experience temporary pullbacks.
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However, such corrections can provide buying opportunities for those seeking long-term gains. As Avalanche approaches this crucial stage, investors are eager to see if it can break above the $50 level and deliver the explosive rally that analysts have predicted.
AVAX Testing fresh supply levels
Avalanche is trading at $43.6, marking the highest price level since April, after a strong break above the key resistance around $35. This impressive price action has revived optimism among investors and analysts, with AVAX demonstrating resilience as it moves toward new supply levels.
Currently, AVAX seems poised to break the critical $50 barrier, a psychological and technical level that could determine the next phase of its rally. However, there is a possibility that the token could consolidate below this level in the coming days. Consolidation would allow the market to absorb recent gains and build momentum for a stronger rise.
On the other hand, if AVAX struggles to recover $50, it could trigger a return to lower demand zones, providing the necessary support to take the next step higher. Such a pullback would not be a bearish trend, but rather a healthy correction that could strengthen AVAX’s trajectory toward sustainable growth.
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As Avalanche continues to rise, investors are closely monitoring price action and volume to gauge the likelihood of further upside. The $50 mark remains a crucial level to watch as a successful breakout could pave the way for new highs and strengthen AVAX’s bullish momentum.
Featured image of Dall-E, chart from TradingView
