Avalanche Price Steadies at $40: Analysts Eye $250 Breakout!

Key Insights:

• AVAX struggled at $18.71, but whale accumulation signals a possible bullish reversal.
• Analysts predict a breakout above $40 could drive AVAX toward the $250 target.
• Open Interest decline shows trader caution, but rising volume may confirm an uptrend.

Avalanche price has faced strong selling pressure, leading to a decline over the past week. Despite this downtrend, analysts see early signs of accumulation, which could signal a bullish reversal. If AVAX price clears key resistance levels, analysts predict a potential rally toward $250.

Avalanche Price Faces Selling Pressure

When writing, Avalanche price was trading at $18.71, reflecting a 2.13 percent decline in the last 24 hours. Over the past week, the token has dropped nearly 10 percent as selling pressure increases.

Market sentiment remains cautious, with the token’s price struggling to hold key support levels. Despite the ongoing downtrend, analysts believe a reversal is possible.

CryptoELITES, a well-known market analyst, has identified a descending wedge pattern on the AVAX price chart.

This pattern suggested that a breakout could be imminent if buying pressure increases. If Avalanche price successfully clears the $40 resistance level, it could confirm a bullish trend reversal.

Whale Accumulation Signals Bullish Reversal

Whale activity has increased significantly, suggesting strong investor confidence despite the declining AVAX price. Data from IntoTheBlock shows a sharp rise in large transactions.

Over the past 24 hours, there were 314 whale transactions. The seven-day high was recorded on March 19, with 353 transactions. This surge in whale activity indicates growing accumulation, which could drive Avalanche prices higher.

The Avalanche Foundation has faced uncertainty after three board members resigned earlier this month. This leadership change caused concern among investors, contributing to the recent decline in the token’s price.

However, the Avalanche team reassured investors that development remains on track. If confidence returns, it could further support a price recovery.

Technical Breakout Could Push Avalanche Price Toward $250

CryptoELITES’ analysis highlights key support and resistance zones for Avalanche price. The $35 to $40 resistance level has rejected multiple breakout attempts in the past. If AVAX price breaks above this range, it could confirm a trend reversal and target $80 to $100 in the short term.

Should the bullish momentum persist, the price could aim for $250 as the next significant target. This projection is derived from historical resistance levels and Fibonacci extension analysis.

However, before this surge, AVAX price must confirm a breakout above $40 with substantial trading volume. The descending wedge chart pattern suggests that Avalanche’s price will eventually break above the trendline.

It may then pull back to the trendline before climbing higher. CryptoELITES highlights the role of volume confirmation. Increased trading activity validates the breakout and attracts more investors.

Market Indicators Show Mixed Sentiment

Accumulation patterns signal a bullish bias. Coinglass data shows that traders are not so confident. The Open Interest of the AVAX futures contracts was $341.27 Million.

The trading volume seems to be low. A rise in Open Interest would confirm renewed interest and a potential uptrend.

Additionally, the trading volume of AVAX declined by 38.92% to $213.47 Million. If volume coincides with price movement, that could be a bullish signal of a prominent rebound.

The Relative Strength Index still stays afloat. This means that Avalanche price can go up or down at any time.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.