Avalanche Bounces Back Following Significant Decline
Avalanche (AVAX) is demonstrating a resurgence in strength after experiencing one of its most significant corrections in recent months. In the face of volatility, the token holds steady close to essential support levels, indicating potential for upward movement.
Market analysts suggest that the recent “flush” has eliminated weaker participants, allowing long-term holders to take charge once again. The enhanced framework and the stabilizing on-chain data indicate that a recovery phase could be in progress.
BullseyeTargets Ranging From $47 To $65 Based On Fibonacci Expansion
Researcher The Bokcast observed that Avalanche’s recent price movements reflect typical accumulation patterns observed prior to past recoveries. The most recent configuration indicates a liquidity sweep and reclaim, a trend frequently seen before a significant bullish shift.
If this thesis is accurate, AVAX may rise to around $47 and possibly reach $65, in accordance with Fibonacci extension levels. These levels signify historical resistance zones where robust bullish continuation phases have developed in previous cycles.
Avalanche On-Chain Activity Hits Two-Year High Amid Strong Network Growth
In September, on-chain activity for Avalanche reached its peak level in almost 2 years, as reported by Marc Shawn Brown. Record highs in transactions and network participation underscore strong engagement, even in the face of market turbulence.
The ongoing involvement of developers and users suggests that AVAX’s ecosystem is growing naturally, rather than solely driven by speculation. This basis reinforces the notion that present market dynamics signify a period of consolidation prior to the forthcoming wave of expansion.
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Technical Structure Shows Early Signs of Breakout
Analyzing the structure, Avalanche’s chart reveals a clear pattern of accumulation situated above a key mid-cycle demand zone. Experts highlight that preserving this area is crucial for driving the next surge upward.
The price movement between $22 and $24 is crucial, serving as the foundation for potential growth ahead. If AVAX maintains its position above this range and successfully reclaims the $30 level, it may signal the confirmation of an early-stage reversal structure.
Avalanche Rebounds on Rising Volume as Accumulation Signals Market Recovery
Analyst N25 noted that Avalanche’s recent bounce from local support is paired with increasing trading volume, indicating a resurgence in accumulation. This indicates that those involved in the market are slowly rebuilding their confidence after the recent downturn.
The restoration of volume and liquidity bolsters the optimistic outlook for reaching the $47 level. A rise above $35 would reinforce the upward trend, indicating a revival of momentum among mid- to long-term investors.
Long-Term Trendline Defines Next Macro Shift
The descending trendline that has limited AVAX rallies since 2022 continues to serve as the key resistance level for a potential macro reversal. Analyst Lamatrade noted that surpassing this multi-year threshold would signify the conclusion of Avalanche’s compression phase.
When this line is firmly crossed, it has the potential to transform the chart structure from distribution to expansion. This change would validate a significant bullish breakout and could pave the way for targets exceeding $65.
Avalanche Trades Between $20 Support and $35 Resistance in Key Price Range
Avalanche is currently fluctuating between robust support at approximately $20 and local resistance close to $35. Maintaining a position above the $22 support enhances the positive sentiment, whereas recovering the $30 mark could trigger a complete turnaround.
Should the price manage to close above the long-term trendline, Fibonacci projections indicate that $47 will serve as the next key checkpoint, with $65 positioned as the upper mid-term target. This situation would indicate that AVAX has moved from a phase of recovery to one of expansion.
