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Avalanche (AVAX)

AVAX Price Prediction: Traders bet should be on Avalanche bulls triggering a 15% rally

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  • AVAX price has breached an inverse head-and-shoulders setup, hinting at a 13% upswing.
  • The recent developments suggest that this move could propel Avalanche market value to $16.
  • Invalidation of the bullish outlook will occur, on the breakdown of $12.77 support level.

AVAX price has broken out of a critical hurdle and pattern, signaling the start of a quick run-up. However, bulls currently face another blockade that needs to be overcome to trigger an extended rally.

AVAX price ready to squeeze more gains

AVAX price action between November 11 and December 2, created an inverse head-and-shoulder setup. This technical formation forecasts a 13% upswing to $14.83, obtained by measuring the distance between the head’s lowest point and the neckline and adding it to the breakout point at $13.

Since AVAX price breached this setup on December 2, it has attempted to continue its ascent to $14.83, but has failed. This failure can be attributed to lack of momentum as it faces the $13.91 hurdle. Overcoming this barrier will allow AVAX price to not only reach its target but also eye a retest of the $15.94 resistance level.

AVAX/USDT 4-hour chart

AVAX/USDT 4-hour chart

While the bullish outlook makes logical sense, investors need to consider the possibility of AVAX price lacking bullish momentum. Rejection at $13.931 could be the first sign of weakness, but a breakdown of the $12.77 level will invalidate the bullish thesis.

Due to the creation of lower low, bears are likely to step up, triggering AVAX price to slide lower and retest the $11.88 support level.

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