Avalanche (AVAX) has caught the attention of crypto analysts Whales_Crypto_Trading and Alan Santana. The market sentinels are rather optimistic regarding the price of AVAX, but it may face some consolidation periods and, therefore, possible declines in its price before skyrocketing. The cautious optimism is what makes AVAX very interesting to watch.
Technical Analysis
Whales Crypto Trading has just published an analysis on Avalanche that is primarily optimistic in nature. By applying the Elliott Wave Theory, he hypothesized that AVAX may be starting a big bull run. According to his analysis, AVAX could be on the brink of a dramatic rise from $9 to $49.
$AVAX Macro chart. Bull Market Target
It was a very intense run up from $9 to $49. (1) I do think we need to correct that growth (2) before we head towards a new ATH
Bull Market Top Target: $230-285
Crypto Traders-join Telegram
— Whales_Crypto_Trading
(@WHALES_CRYPTOx) August 12, 2024
The price, according to Whales Crypto, might slide a bit in a correction phase before proceeding to increase. The analysts’ guestimate this bull market could have AVAX reach as high as $230 to $285 — which is quite a huge appreciation from the current price of approximately $21.
However, some hurdles will be met on the way. As affirmed by the prognosis, a vital resistance hangs in the 0.618 Fibonacci retracement level. This could see AVAX touch the projected highs if it finally breaks out past this level. Until then, its future remains unclear regarding where the market would head.
AVAX Price Action
In the price action department, AVAX is shown losing 2.25% over the last day. In the last week, the altcoin could only muster a 0.9% gain. Given the 24-hour Long/Short ratio of 0.786, traders seem to be heading toward short holdings, which reflects bearishness.
Meanwhile, cryptocurrеncy аnаlyst Alаn Sаntаnа is spаrking optimism in thе Avаlаnchе (AVAX) community, outlining а bullish forеcаst thаt points to а surge in its price sooner rather than lаtеr. Sаntаnа’s аnаlysis wаs bаsеd on а kеy obsеrvаtion: AVAX mirrors historicаl consolidаtion pаttеrns еxhibitеd by mаrkеt lеаdеr Bitcoin bеforе substаntiаl pricе incrеаsеs.
Avalanche Pre-2025 Bull-Market Accumulation Zone & Strategy
By now, you already know the theme… Accumulation before bullish-wave. Bullish wave to end in a bullish-run.
Avalanche vs Bitcoin: An Analogy
The accumulation phase can be seen as the training phase, the… pic.twitter.com/bEsEAD1QJk
— Alan Santana (@lamatrades1111) August 10, 2024
Santana believes the mildly bullish wave that appeared in late 2023 and early 2024 was just the appetizer. According to him, the current phase of correction is an imperative one, which would lead to another phase of accumulation. This could then give way to a big breakout. Santana even calls for AVAX to hit a new all-time high of $382, relying on extended Fibonacci levels.
AVAX’s chart is balanced, with both bearish and bullish indications having a bearing. The long-term view is supported by technical analysis and historical patterns, projecting a considerable price increase, but in the short run, there are indications that price drops and consolidation would defer the probable rally.
It will be interesting to watch AVAX over the next few weeks. Will it begin a climb towards expected highs and break through the resistance it is now facing, or would further drops be propelled by a dominance of short-term negativity? Anything goes in the highly volatile cryptocurrency market.
Featured image from StormGain, chart from TradingView
#CryptocurrencyMarketNews, #Altcoins, #Avalanche, #AVAX, #Bitcoin, #Crypto