AVAX Eyes $46 Rally if $27 Resistance Breaks
Avalanche (AVAX) is trading near $25, confined within a $22–$27 consolidation band that has persisted since March. Bulls are eyeing a decisive break above the key $27 resistance to trigger a potential rally toward $40–$46, as highlighted by analysts Ali Martinez and James. On the downside, support holds between $23.90 and $22.00, with declines below this range potentially driving prices toward $20.50 and $16.
Network metrics reinforce bullish sentiment: Avalanche’s C-Chain recorded 35.8 million transactions in August—its second-highest monthly count—and saw 10.9 million transactions in a single week, indicating robust DeFi and NFT activity. Technical indicators also favor buyers, with the Money Flow Index at 68 approaching overbought levels and a bullish weekly MACD crossover confirming upward momentum.
Bullish
This article highlights that AVAX has maintained strong support and is gathering bullish momentum within a prolonged $22–$27 consolidation range. A successful break above the $27 barrier could mirror past breakout events for AVAX, such as the May 2024 surge from $24 to over $50 driven by renewed network activity. The recent record-high C-Chain transactions signal growing adoption of DeFi and NFT protocols, providing fundamental support for bullish price action. Technically, the Money Flow Index at 68 indicates sustained buying inflows without reaching overbought extremes, while the bullish weekly MACD crossover confirms buyer dominance. In the short term, traders may target an initial move toward $30–$35, with potential resistance near the long-term descending trendline around $40–$44. If AVAX remains above $27, the path is clear for a rally to the $46 target identified by analysts. These on-chain metrics and technical signals together point to a bullish market impact.