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After reclaiming a crucial level over the past week, Avalanche (AVAX) faces resistance near the $27 mark. Some analysts have suggested that reclaiming this area could kickstart a rally toward the next key resistance levels.
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Avalanche Targets $32 Resistance
Avalanche has seen a nearly 40% surge over the past week, jumping from the $19 mark to a three-month high of $26.84 on Monday. The cryptocurrency hit an 18-month low of $14.66 during the early April retraces but recovered around 37% ahead of its recent breakout.
Amid the market recovery, AVAX has broken out of its five-month downtrend, which saw the cryptocurrency retrace over 73% from its Q4 2024 high. Moreover, Avalanche formed a 2-month Cup-and-Handle pattern, with the neckline at the $23 resistance.
Analyst Sjuul from AltCryptoGems pointed out that the formation had a “super clean” target and was “in confluence with the next resistance level,” at around the $32 mark. This area, lost in early February, was a crucial resistance and support zone before the Q4 2024 rally and the Q1 2025 market shakeouts.
After the neckline breakout and reclaiming this level over the weekend, the analyst noted that the target “is clear now.” As such, Avalanche could likely see another 30% rally toward the $32 mark.
Meanwhile, analyst CW highlighted that AVAX has a key sell wall near the $27 level, where it has faced resistance over the past few days. However, if it breaks through this barrier, it could surge to the $36 level before facing the next selling wall near the $38.5 area.
Another wall between the $42.5-$46.5 levels lies ahead. On the contrary, if the cryptocurrency gets rejected from the first resistance, the price could revisit the breakout levels and the downtrend line around the $20 mark, with a selling wall below it that could serve as support.
AVAX To Repeat BTC And SOL’s Playbook?
Crypto Amsterdam suggested that many altcoins, including Avalanche, are forming a setup seen in Bitcoin’s (BTC) and Solana’s (SOL) charts. According to the analyst, the setup follows a Macro range, divided into five cycle stages.
The first stage, set during the bull market, sees a cryptocurrency move quickly toward the highs, setting the range’s upper boundary. During the second phase, at the start of the bear market, the token’s price records “steep lower lows and highs” toward the range’s low before moving to the third stage, the accumulation phase. In this stage, the cryptocurrency registers a deviation below the range’s low.
The fourth stage sees the cryptocurrency register its first higher high and reclaim the range lows again. Lastly, the cryptocurrency moves toward the past cycle’s high during the fifth stage, breaking past the range’s high after reclaiming the mid-zone.
Crypto Amsterdam explained that AVAX’s chart is “another super clean mini cycle example.” After hitting its all-time high (ATH) of $146 in November 2021, Avalanche set its range between the $20-$130 levels, falling below the range’s low in mid-2022.
The cryptocurrency reclaimed the range low in late 2023, ending the third stage and entering the fourth one during the early 2024 rally. Since then, it has retested the range lows after its deviation, recovering this level during last week’s breakout.
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If Avalanche continues to follow this setup, it must reclaim the mid-range, at around the $75 mark, to surge to the upper boundary and potentially hit a new ATH. However, the analyst also suggested that falling below the local bottom would invalidate the setup.
Featured Image from Unsplash.com, Chart from TradingView.com