Ever since the crypto markets have shown some stability, altcoins like Avalanche have refrained from maintaining a descending trend. Although the bears are restricting the rally below a pivotal resistance, a tight accumulation could result in a massive breakout. The AVAX price is currently trading at $22.19 while displaying a strong long-term growth potential, mainly due to the platform’s expanding technology, ecosystem, and adoption, despite ongoing volatility and recent bearish trends.
Looking at the price performance in the last 12 months, the AVAX price has experienced pronounced price swings. The price displayed massive volatility throughout 2024 and surged above $50 just before the close. Meanwhile, the bears intensified their action, causing not only a bearish yearly close but also a bearish start to 2025 that persists to date. Although the price has halted extended bearish action, the failure of bulls to surpass an important zone at $25 causes concerns for the upcoming price action.
The weekly chart of AVAX displays a strong presence of the bulls as they have defended the lower crucial support below $10. Moreover, the latest rebound from a strong trend reversal zone around $15 has validated the presence of bulls. Interestingly, the price is consolidating along the neckline of the double-bottom pattern while a similar pattern is in the making. if it breaks the pivotal resistance at $22.67, which could occur anytime from now,. However, the Gaussian channel has turned bearish in the weekly chart, with the Bollinger bands squeezing, indicating a drop in volatility.
Therefore, the upcoming monthly close can be the turning point for the Avalanche price as a rise above the resistance and trigger a strong bull run to $50, including a small retracement or correction. Besides, the open interest and market capitalization have risen significantly, which indicates the growing investor confidence. However, the technical analysis shows a mixed picture, suggesting a short-term pullback. Moreover, while the key indicators like CRSI indicate oversold conditions, they hint at a potential bullish reversal.
