Avalanche (AVAX) is showing renewed strength after maintaining solid support above the $20 level for more than two weeks. The cryptocurrency is now trading at $23.55 and has gained over four percent in the past week, signaling a potential shift in momentum toward the bulls.
The recent price movement has caught attention due to the clear breakout from a falling wedge pattern on the weekly chart. AVAX began to follow a possible reversal structure when it made a sequence of lower highs and lower lows. The downward pressure is lessening since the price is now above the upper limit of the wedge.
In support of this breakout, the Awesome Oscillator is turning green despite remaining below zero. It demonstrates a steady rise in tendency from selling to buying, and if this continues, the support level at $20.12 may hold, allowing AVAX to gain toward $30.
Source: Tradingview
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Ascending Triangle Formation Strengthens Bullish Outlook
On the daily timeframe, the bullish setup becomes even clearer. AVAX is currently trading inside an ascending triangle, a chart pattern that typically supports upward continuation. Price action is nearing the triangle’s resistance, while the rising support trendline has consistently pushed higher.
The Relative Strength Index (RSI) has stayed above the neutral line, reinforcing the ongoing bullish bias. It shows that buyers are still active, and they have yet to show signs of weakness.
Source: Tradingview
Breaking above the $25 resistance could take AVAX up to approximately $30.45, as that price corresponds to the 0.618 Fibonacci retracement level. With a successful breakout, the token could approach $35 and exceed $40 if a strong bullish trend continues.
Should the current resistance continue to hold, a drop could occur, and if bears grow stronger, prices might be tested at $15.
Conclusion
AVAX is forming a solid foundation for a potential rally, backed by bullish chart patterns and momentum indicators. As long as support at $20 holds firm, the path toward $30 remains open.
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