Avalanche (AVAX) Poised for Massive 40% Gain, but Here’s Catch

Avalanche (AVAX) is expected to print a massive 40% in profit in the near future under the condition that it breaks out of the $33-$37 region.

Anisha Pandey By Anisha Pandey Julia Sakovich Edited by Julia Sakovich Updated 3 mins read
Avalanche (AVAX) Poised for Massive 40% Gain, but Here’s Catch
Photo: Depositphotos

Key Notes

  • Analyst Ali Martinez predicted a 40% surge in the price of Avalanche (AVAX) in the near future.
  • Martinez said that this prediction will only apply if AVAX is able to successfully break above the $33-$37 price level.
  • A failure to break above $37 puts AVAX at the risk of dropping to the nearest support level of $34.18.

Avalanche (AVAX), a prominent layer 1 blockchain network, is predicted to print a monumental gain of 40% in the near future as the broader market witnesses a recovery, with sector leader Bitcoin BTC $95 147 24h volatility: 1.0% Market cap: $1.89 T Vol. 24h: $35.66 B claiming the $105,000 price level. Prominent analyst in the digital asset space, Ali Martinez, made a bullish prediction for Avalanche AVAX $23.20 24h volatility: 6.6% Market cap: $9.60 B Vol. 24h: $395.88 M , provided the altcoin breaks out of the $33-$37 price region.

According to a post on social media platform X (formerly Twitter) by Martinez, AVAX has formed a descending triangle pattern on the four-hour chart. The short timeframe of the chart indicates that the possibility of this playing out is very high in the near future. The descending triangle shown by Martinez in the chart below highlights the possible move for AVAX in the coming days.

Avalanche (AVAX) price analysis

Source: TradingView

Avalanche is poised for significant gains of 40% if the cryptocurrency breaks above the descending trendline that sits in the $37-$38 price region. However, if AVAX fails to break this trendline, a deeper analysis of the chart shows that a retest of the nearest support of $34.18 is likely. A drop below this support then opens the chances of a massive collapse to $29.17, $24.69, or even $22.18.

Meanwhile, CoinMarketCap data shows that the trading volume of Avalanche remains robust with a 52.69% increase in the past 24 hours. The altcoin’s volume stands at a substantial $499.79 million, while its market cap stands at $14.89 billion, ranked as the 12th-largest digital currency.

Avalanche (AVAX) Technical Analysis

Avalanche (AVAX) accumulation has been on the rise since November, but slight distribution was seen during late December and early January. However, since then levels have remained significant, and the gradient of the line suggests that a reverse could be on the horizon. However, to confirm a reversal, the volume needs to be higher than the levels in November.

Avalanche (AVAX) Accumulation

Source: TradingView

The price action of Avalanche is situated in the lower end of the Bollinger Bands, which means that the bears are currently prevailing. A retest of the lower trendline is likely, and if it holds, investors could potentially see an attempt to break out above $37 in the coming days.

Avalanche (AVAX) price analysis

Source: TradingView

The Relative Strength Index (RSI) for the Avalanche price action reads a value of 44.03, which means that the selling pressure is much higher than the buying pressure for AVAX. Meanwhile, the gradient of the line suggests stagnancy in the altcoin’s price trajectory, suggesting uncertainty in the market.

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.

Avax News, Altcoin News, Cryptocurrency News, News
Anisha Pandey

With a background in finance and a passion for innovation, Anisha has been covering the ever-evolving world of crypto for over four years. Her deep understanding of the crypto market have made her a trusted source for analysis and news. Whether it's dissecting the latest trends or decoding whitepapers, Anisha is dedicated to bringing clarity to the world of digital assets.

Anisha Pandey on X