Avalanche (AVAX) is currently trading at $26.42, following a formidable 30% surge from the $20 mark to $27. 

After a steep correction from its peak in March, Avalanche has been relatively quiet, underperforming in comparison with stronger altcoins. Nevertheless, Avalanche is gaining momentum, with analysts and investors sharing crucial data pointing to a possible rally in the approaching months. 

This renewed optimism suggests that Avalanche is perhaps on the verge of a big breakout, making it one to look at closely because the market evolves.

Avalanche Rally On The Horizon

Avalanche is generating significant buzz amongst investors and analysts who’re anticipating a possible rally from its current level to recent highs. 

Distinguished crypto analyst and investor Allincrypto recently shared a detailed chart on X, providing a technical projection of AVAX’s next significant move. The chart highlights AVAX’s price motion because the last bull run, underscoring the importance of the $20 price level. This level was a big resistance point several months before the last rally. Still, recent price motion has confirmed it as solid support after a successful retest over the past few weeks.

The technical outlook suggests that the Layer-1 (L1) might be getting ready to a big upward move, much like the rally it experienced between October 2023 and March this 12 months. This era saw AVAX achieve remarkable gains of over 600%, and plenty of within the crypto community consider that the present market conditions could lead on to the same (or a much bigger) final result.

A mixture of solid technical indicators and growing investor confidence fuels the anticipation. With Avalanche holding firmly above its previous resistance and turning it into support, the trail seems clear for a recent rally that would propel Avalanche to recent highs. The subsequent few weeks will likely be crucial in determining whether AVAX can sustain this momentum and fulfill the bullish expectations set by the crypto community.

AVAX Tags $27 And Breaks Above Local High

Yesterday, AVAX rose to $27 following excitement sparked by comments from Federal Reserve Chairman Jerome Powell, who suggested a possible policy shift, and investors now expect a 25bps rate of interest cut by September 18. This announcement fueled optimism across the crypto market, driving AVAX to this price level. 

Nevertheless, after reaching $27, AVAX began to consolidate below this price, currently trading at $26.35. This consolidation comes after it successfully broke above the previous high at $22.8, signaling strength and setting its sights on the subsequent significant resistance at $33. 

For AVAX bulls, maintaining momentum above $27 is crucial for sustaining the rally. Nevertheless, if the value fails to carry and consolidate above this level, the anticipated rally could also be delayed further, because it has yet to get better above the each day 200 Moving Average—a critical indicator for confirming a bullish trend. Holding above this moving average would signal that Avalanche is on a solid path toward further gains, but until then, the market stays cautious.