As the broader crypto market begins to shake off some of its recent funk, Avalanche is catching a bit of a second wind. The altcoin’s price is up 4.91% on the day, currently hovering around $20.45. And with a fresh bullish engulfing candle forming on the charts, $AVAX is starting to look… well, a little spicy again.
But can this bounce off the $20 mark turn into something bigger? Maybe even a run toward $54? Let’s dig into it.
AVAX Price Set-Up: Holding the Line and Eyeing the Sky
On the daily chart, AVAX has shown some guts. After defending the $16 level with a clean double bottom bounce, the bulls are now pressing up against a stubborn descending resistance trendline that’s been in play for a while now.
Right now, price action is dancing just above $20—a psychological barrier for sure—and running into the 23.6% Fibonacci retracement level at $21.33. That spot’s acting like a bit of a speed bump.
That said, Avalanche has already cleared a major liquidity zone (between $18.13 and $19.75), and that’s no small feat. If it can break above this current resistance pocket, the next thick zone of volume sits closer to $25. And wouldn’t you know it—38.2% Fib retracement lines up around $25.48. That’s the next logical target if momentum holds.
Technicals are also lining up with the bulls. MACD and signal lines are pushing toward positive territory. The daily RSI is floating above 50 and ticking higher, hinting at building strength. Momentum indicators are flashing green. The setup is there—it just needs a spark.
And beyond $25? If this thing really gets legs, we’re looking at possible targets near $34… even $55, if the stars align.
Derivatives Data: Bulls Are Tiptoeing In
The derivatives market is also showing signs of life. Open interest for Avalanche contracts is up to $416.67 million—a 2.56% gain over the past day. Not jaw-dropping, but it’s growth.
The funding rate flipped positive, now sitting at 0.0076%, showing a gentle lean toward the bullish side. That said, the long/short ratio is practically even: 49.95% long vs. 50.05% short. So traders are cautious, maybe even split down the middle.
Final Thoughts: Can AVAX Break Out?
All in all, Avalanche is looking stronger than it has in weeks. But the real test? That resistance trendline. If bulls manage to punch through and flip that area into support—especially above $21.33—we could be in for a serious move. $25 is within reach. Beyond that, $34 and even $55 might not be just dreams.
For now, though, keep an eye on volume and that stubborn trendline. A breakout could change everything—or we might get another fake-out. Welcome to crypto.
