The AVAX token shows promising indicators of surpassing months of consolidation. The cryptocurrency is trading within a defined range between major support and resistance levels.
Analysts suggest that this extended sideways movement may soon give way to upward momentum. Technical patterns indicate that Avalanche's price has formed a symmetrical triangle pattern on the charts. This consolidation phase has lasted several months as buyers and sellers compete for control.
The token is currently maintaining strong support levels while testing upper resistance limits. Trading volume has remained relatively stable during this accumulation period.
Experts believe that these conditions often precede major price movements in cryptocurrency markets.
Avalanche is trading at $21.35, with a 24-hour trading volume of $361,467,839 at the time of publication. The token has risen by 3.73% in the last day but has fallen by 9.82% over the week.
This recent performance reflects broader volatility in the cryptocurrency market affecting most digital assets.
The cryptocurrency is ranked seventeenth by market capitalization on CoinGecko, with strong trading activity. Despite weekly losses, AVAX has maintained critical support levels that technical analysts consider bullish. Market participants view the current price range as an attractive accumulation area for long-term investors.
■ Critical AVAX resistance levels define the breakout path.
Technical analyst CW identifies two major sell walls that may determine the direction of AVAX's price.
The first resistance barrier is at $22, where previous selling pressure is concentrated. A breakout above this level indicates the beginning of renewed upward momentum.
The second critical resistance area appears at around $24, based on historical price movement analysis. CW indicates that exceeding these levels will trigger a sustainable upward trend. The area between $22 and $22.50 shows multiple failed breakout attempts from late May trading sessions.
Chart analysis reveals strong demand zones at around $18, $16, and $14, providing downside protection. These support levels have previously attracted buying interest during market corrections.
Trading volume patterns indicate continued accumulation of prices near current price levels.
The breakout target for Avalanche reaches $71.
Investment firm Solberg Invest expects AVAX's price to reach $71 after a successful breakout from the current consolidation patterns.
This target represents significant upside potential from current trading levels. The forecast assumes the continued stability of the symmetrical triangle pattern.
A breakout above the $25 level would reclaim higher peaks, confirming a trend reversal according to technical analysis principles. This move would negate the short-term bearish pressure that has kept prices in check.
An increase in trading volume will be necessary to absorb selling pressure at key resistance levels.
Failure to break through the $22 resistance level may lead AVAX to re-test the support area between $19 and $18, an area where buyers previously emerged. Current consolidation patterns suggest a significant move is approaching as the triangle pattern nears completion.