In a remarkable rally, the price of Avalanche (AVAX) has more than doubled in December, surging to a new yearly high of $46.40 today. As the cryptocurrency approaches the key $50 level not seen since May 2022, analysts are optimistic about the potential for further upside before the year concludes.
Rapid December Surge: AVAX has experienced a rapid ascent since October, when it traded at $8.65. Within a span of 63 days, the price soared by an impressive 425%, breaking through a 750-day descending resistance trend line that had been in place since its previous all-time high. The cryptocurrency’s journey has been marked by eight bullish weekly candlesticks in the last nine weeks.
Technical Analysis Insights: Technical analysts on X are expressing a bullish outlook, with indicators supporting a positive trend. The weekly Relative Strength Index (RSI), a momentum indicator, is increasing and above the pivotal 50 level, reinforcing the bullish sentiment.
Analyst Views and Predictions:
- Bluntz Capital presents a bullish wave count, anticipating AVAX to complete the fifth and final wave near $55.
- Flash shares a bullish perspective, setting a target of $65, driven by a breakout from a long-term pattern and surpassing a horizontal resistance area.
AVAX Price Prediction: $50 Next? The technical analysis on the daily time frame aligns with a bullish outlook, employing the Elliott Wave theory to discern the trend’s direction. Current projections suggest AVAX is in the fifth and final wave of an upward movement that commenced in September. If the cryptocurrency sustains its upward trajectory, the next target is $59, indicating a potential 28% increase. The daily RSI supports this outlook, having broken out from its bearish divergence trend line.
Cautionary Note: While the AVAX price prediction remains optimistic, analysts emphasize the importance of a daily close above $44 to validate the bullish trend. A failure to maintain this level could signal a potential reversal, leading to a correction and a retest of the nearest support at $22, representing a 50% decline.
Conclusion: As Avalanche (AVAX) continues its impressive December rally, approaching the $50 milestone, analysts and traders are closely monitoring key levels and technical indicators to gauge the cryptocurrency’s potential for further upside before the year concludes. The current market sentiment reflects a strong bullish outlook, but caution is advised in monitoring crucial support and resistance levels.