- Avalanche price hits six-week high, prints four-day uptrend, as it crosses $26.50 hurdle to challenge seven-month trading range.
- Avalanche ecosystem net inflows, partnerships with Toyota and WeBlock, strengthen AVAX upside momentum.
- Sustained trading beyond key SMAs keeps buyers hopeful, but an overheated Stochastic points to consolidation before the next rally.
- With short-term gains building and the multi-month trading range breakout in sight, a reversal of yearly losses seems likely.
Avalanche (AVAX) price rallies over 3.0% to $26.75, the highest since July 28, as bulls ride on multiple cylinders early Wednesday morning in New York.
Among the key catalysts, a major boost came from the news that the Avalanche ecosystem topped all blockchains with $111 million in weekly net inflows, per Nicolas Lemaitre’s post on X, grabbed strong attention over the weekend.
Additionally, Avalanche’s partnership with Toyota to develop a blockchain-based robotaxi network and the signing of a Memorandum of Understanding (MoU) with WeBlock to expand Real-World Assets (RWAs) and the stablecoins market in South Korea also contributed to the AVAX rally.
Technically, a clear breakout of a six-week symmetrical triangle and a downward-sloping resistance line from early February lures the Avalanche buyers, even as the overheated Stochastic challenges the quote’s immediate upside.
Meanwhile, AVAX trading volume traces the four-day winning streak in prices to hit a two-week top, whereas the market capitalization rises to the highest level since early February, keeping buyers hopeful. According to Santiment, Avalanche’s daily trading volume jumps to $1.05 billion, a fortnightly high, whereas the market cap rises to the early February levels with $11.30 billion figures at the latest.
With this, AVAX looks poised to reverse the yearly loss, currently around 24.00%, even if the potential north-run is likely to be gradual, rather than an abrupt rally.
Avalanche Price: Daily Chart Challenges Broad Consolidation Pattern
A successful breakout of a 1.5-month-old symmetrical triangle, as well as a descending resistance line from February, keeps AVAX bulls hopeful.
Still, overheated Stochastic conditions suggest a short-term consolidation in the price before a heavy rise.
This highlights July’s top of $27.37 and early February swing high near $28.80 as potential pullback points.
Should Avalanche buyers cross $28.80 hurdle, the 50% Fibonacci retracement of its January-April downturn, near $29.90, will precede the $30.00 threshold to test the upside momentum.
Beyond that, the 61.8% and 78.6% Fibonacci ratios, respectively near $33.50 and $38.60, as well as January’s low around $31.80, will be the buyer’s breathing points during the run to reverse the yearly loss, targeting the yearly high of $45.04.
Meanwhile, a daily closing beneath $26.50 ruins the AVAX breakout, with the $26.00 acting as a short-term support.
In a case where the altcoin remains weak past $26.00, the aforementioned triangle’s bottom surrounding $23.30, followed by the 200-day SMA of $21.41, will be the last line of defense for the bulls.
Avalanche Price: Four-Hour Chart Highlights Multiple Trading Filters
On the four-hour chart, Avalanche’s triangle breakout keeps the buyers hopeful despite the overbought Stochastic, just like the daily chart projections.
However, the 50% and 61.8% Fibonacci Extensions (FE) of its June-August moves, close to $27.35 and $29.20, act as additional upside filters to watch for the bulls, apart from what’s already discussed on the daily chart.
Meanwhile, the 200-bar SMA level of $24.28 and the previous monthly low near $20.60 become extra filters toward the south.
Conclusion
Avalanche price gains support from technical breakout and fundamental news, challenging the multi-month trading range.
The overheated Stochastic, however, may offer intermediate pauses to the AVAX run-up as it seeks reversal of the yearly loss, currently around 24.00%. Hence, the altcoin appears to be well-set for further upside, even if the stellar rally is less likely.
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