Avalanche has seen an impressive 25% gain since Wednesday, fueled by the Federal Reserve’s announcement of a 50 basis point interest rate cut. This has pushed AVAX to a critical resistance level that will likely shape its price action in the coming weeks. Currently trading near $28, the token is testing a key supply zone that has analysts and investors paying close attention to its next move.

Many market participants are positive that a break above this resistance could pave the way for an aggressive price rally for AVAX. This would likely push AVAX into a up-to-date uptrend, potentially leading to up-to-date highs and even a 50% augment for the token. However, if Avalanche fails to break through this level, it risks a pullback that could cause prices to retest previous support levels.

Analysts point out that this moment is crucial in determining AVAX’s market direction, as broader cryptocurrency sentiment has become more bullish following the recent Federal Reserve decision. With trading volume and investor interest increasing, the coming days will be crucial in determining whether Avalanche will maintain its momentum or face a short-term correction.

Avalanche testing of key delivery levels

Avalanche has been one of the best-performing altcoins in recent days, showing impressive strength amid a broader market rally. This latest momentum could be just the beginning of a more significant move for AVAX, as analysts and investors predict even bigger gains if the token continues to break through key supply levels.

One of the most respected figures in the cryptocurrency world, Carl Runefelt, shared an positive opinion Avalanche technical analysis on Xstating that AVAX has broken out of a falling wedge pattern, which is a classic indicator of bullish price action.

According to his analysis, AVAX has successfully tested the wedge and is currently targeting medium-term price levels. Runefelt’s price targets for AVAX are $28, $33, $41.30, and $54, each representing key supply zones that the token needs to cross to continue its upward trajectory. If AVAX reaches $41.30, it would reflect a 50% augment from its current price, which would be significant progress.

Currently, Avalanche has formed a up-to-date high, confirming its strength. While the price may consolidate before making another move, many traders believe that this consolidation could be a stepping stone towards a larger upside.

Given the positive market sentiment following the recent Federal Reserve rate cut, AVAX is well-positioned for further growth, especially as more investors look to capitalize on its solid technical fundamentals.

If AVAX can maintain this momentum, it could potentially lead to significant gains in the medium term.

Price levels to look out for

AVAX is currently trading at $27.39 after testing the daily 200-period exponential moving average (EMA) at $28.66. The token has seen an impressive 40% rally since early September, bringing it closer to key supply levels that will likely shape price action in the coming weeks.

For bulls to maintain their momentum and extend the rally, AVAX needs to break through the $28 resistance and reclaim the 1D 200 EMA as support. This would signal a more sustained uptrend and set AVAX up for further gains.

However, if the price struggles to stay above $25, a deeper correction could occur, which would bring short-term bearish pressure. Despite this risk, there is a possibility that AVAX could consolidate between $25 and $28, which would give the token room to gather strength for a more significant rally in the near future. Traders are closely watching these levels as the market looks for direction.

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