Avalanche (AVAX) is trading around $25 after a 10% gain since last Thursday as the broader cryptocurrency market shows signs of recovery. Bitcoin and most altcoins are moving up from their yearly lows, and AVAX is at a critical price level that could shape its price action in the coming weeks.

Analysts and investors are closely monitoring the situation, anticipating significant volatility for Avalanche, with many calling for a potential trend reversal, and some predicting a acute and aggressive rally if AVAX manages to break out of its weekly bearish pattern.

However, this volatility could also lead to downside risk if key support levels are lost. The next few days will be crucial to determining whether AVAX can capitalize on the market momentum or face more turbulence.

The avalanche trend change will lead to higher prices

The market is at a turning point as previously fearful investors are starting to feel encouraged by recent price action. Avalanche (AVAX) is up 25% from its local lows since September 6 and is currently trading at a key level that could determine price direction in the coming months.

This key level caught the attention of analysts and investors, especially one prominent analyst, Daan, who shared his opinion technical information about X

In his analysis, Daan points to a well-defined bearish channel that has kept AVAX in a downtrend for several months. However, AVAX is now trying to break out of this downtrend, which could signal the end of its bearish phase.

If AVAX successfully breaks through the $25 resistance level, Daan predicts the price could quickly rally towards $28. This breakout would signal a significant change in the near- to medium-term trend, potentially changing market sentiment and setting the stage for further growth.

A successful breakout would likely trigger a up-to-date wave of buying pressure, with analysts predicting an aggressive rally towards $30 or higher in the coming weeks. The next few days will be crucial, with any failure to break resistance potentially sending AVAX back into the bearish channel, retesting lower support levels.

AVAX Price Action: Key Levels to Watch

AVAX is trading at $25.04 following a 4-hour uptrend characterized by higher highs and higher lows. This positive move comes after breaking the 4-hour 200-hour exponential moving average (EMA), which AVAX successfully tested as support last Thursday, signaling near-term strength. This move has encouraged bullishness among traders.

The next key challenge for AVAX is to break through the $28 resistance level. Doing so would confirm a more significant uptrend and signal a change in structure on higher time frames, potentially setting the stage for even higher prices in the coming weeks.

However, if AVAX fails to sustain a position above the 4-hour 200 EMA, which is currently at $23.50, the price could experience volatility or a deeper correction, as well as possibly testing lower demand levels.

Featured image is from Dall-E, chart is from TradingView