Avalanche (AVAX) has surged over 40%, reaching a critical supply level that, if broken, could trigger a substantial rally. The recent surge has captured the attention of traders and investors who recognize the potential of Layer-1 blockchains as AVAX positions itself as a leading contender in the space.
Among those following this development closely is top analyst and investor Kaleo, who recently shared a technical analysis with a bullish price target of $420 for AVAX. Kaleo’s optimistic outlook aligns with broader market sentiment as Bitcoin and Ethereum continue to rise, creating a favorable environment for blue-chip altcoins like Avalanche to make significant moves.
The next few days will be critical in determining whether AVAX can push through this supply level and confirm its bullish trajectory. As more attention shifts toward AVAX and other high-profile altcoins, an aggressive upward move could soon follow, solidifying Avalanche’s status as a key player in the Layer-1 blockchain sector.
Avalanche recently surged above crucial supply levels, breaking through resistance points that had constrained its price for weeks, with the $30 mark emerging as particularly significant. This breakout has bolstered optimism for AVAX’s long-term potential, as it hints at a bullish shift in momentum.
Top analyst and investor Kaleo has taken to X to share his technical analysis, displaying a detailed AVAX price chart with key levels highlighted. According to Kaleo, Avalanche’s potential in this cycle could drive its price to an ambitious target of $420, representing a remarkable 1,200% surge from current levels.
For this bullish scenario to unfold, AVAX must maintain its current momentum and break past additional resistance. Specifically, the price needs to surpass the last higher high around $33, which would strongly confirm a sustained bullish structure. Clearing this level would likely increase market confidence and attract new investors, as the confirmed uptrend would signal a potential long-term rally.
As AVAX continues its upward trajectory, investor interest in Layer-1 blockchain platforms like Avalanche grows, underscoring the broader market’s belief in the value of decentralized networks. If AVAX can successfully consolidate above $30 and break $33, it may open doors for substantial gains in this cycle.
Avalanche is currently trading at $31.4 after breaking above its 200-day moving average (MA) at $28.1, marking a significant achievement in AVAX’s price structure. This move has brought AVAX into a critical supply zone that has restrained its growth since early June.
For bulls aiming to confirm a sustained bullish trend, AVAX needs to exceed the $33 mark and establish it as a reliable support level. Holding this level could signal a stronger uptrend and attract additional investor confidence.
However, a healthy consolidation phase could be beneficial at this point. A pullback to test the $29 level as support would reinforce market stability, allowing AVAX to gather momentum before attempting the next major push upward. For now, AVAX’s price action appears strong, and a breakout above $33 could set the stage for a long-term bullish phase in the altcoin market.
Featured image from Dall-E, chart from TradingView