Analyst Ali Martinez predicted a 40% surge in the price of Avalanche (AVAX) in the near future.
Martinez said that this prediction will only apply if AVAX is able to successfully break above the $33-$37 price level.
A failure to break above $37 puts AVAX at the risk of dropping to the nearest support level of $34.18.
Avalanche (AVAX), a prominent layer 1 blockchain network, is predicted to print a monumental gain of 40% in the near future as the broader market witnesses a recovery, with sector leader Bitcoin claiming the price level. Prominent analyst in the digital asset space, Ali Martinez, made a bullish prediction for Avalanche , provided the altcoin breaks out of the $33-$37 price region.
According to a on social media platform X (formerly Twitter) by Martinez, AVAX has formed a descending triangle pattern on the four-hour chart. The short timeframe of the chart indicates that the possibility of this playing out is very high in the near future. The descending triangle shown by Martinez in the chart below highlights the possible move for AVAX in the coming days.
Source: TradingView
Avalanche is poised for significant gains of 40% if the cryptocurrency breaks above the descending trendline that sits in the $37-$38 price region. However, if AVAX fails to break this trendline, a deeper analysis of the chart shows that a retest of the nearest support of $34.18 is likely. A drop below this support then opens the chances of a massive collapse to $29.17, $24.69, or even $22.18.
Meanwhile, CoinMarketCap shows that the trading volume of Avalanche remains robust with a 52.69% increase in the past 24 hours. The altcoin’s volume stands at a substantial $499.79 million, while its market cap stands at $14.89 billion, ranked as the 12th-largest digital currency.
Avalanche (AVAX) Technical Analysis
Avalanche (AVAX) accumulation has been on the rise since November, but slight distribution was seen during late December and early January. However, since then levels have remained significant, and the gradient of the line suggests that a reverse could be on the horizon. However, to confirm a reversal, the volume needs to be higher than the levels in November.
Source: TradingView
The price action of Avalanche is situated in the lower end of the Bollinger Bands, which means that the bears are currently prevailing. A retest of the lower trendline is likely, and if it holds, investors could potentially see an attempt to break out above $37 in the coming days.
Source: TradingView
The Relative Strength Index (RSI) for the Avalanche price action reads a value of 44.03, which means that the selling pressure is much higher than the buying pressure for AVAX. Meanwhile, the gradient of the line suggests stagnancy in the altcoin’s price trajectory, suggesting uncertainty in the market.
