Avalanche (AVAX) Ready To Target $28: Investors Expect A Reversal

[Bitcoin]

Avalanche (AVAX) Ready To Target $28: Investors Expect A Reversal

Avalanche (AVAX) is gaining bullish momentum after days of uncertainty and fear in the market. Following a sharp decline, AVAX has surged more than 18% since hitting a low of $20.5 on September 6 and is now showing signs of strength as it flirts with higher prices. 

This recovery has sparked optimism among top investors and analysts, many of whom are positioning themselves for the next potential rally. Analysts share their views on social media, suggesting that AVAX could soon target even higher levels, with an optimistic target above $28. 

This shift in sentiment marks a significant change from the previous bearish outlook as AVAX continues attracting attention from retail and institutional players. As the market evolves, all eyes are on Avalanche to see if it can maintain this bullish momentum and reach new price levels.

Avalanche Showing Strength In Higher Time Frames

Avalanche (AVAX) has been one of the most affected altcoins over the past few months, enduring a 73% decline from its March highs. Despite this significant drop, top analysts and investors are now predicting a reversal, with many expecting a swift recovery for this Layer-1 blockchain. 

One of the leading voices is Daan, a prominent crypto trader and investor, who recently shared his analysis of AVAX's price structure on X. He highlighted that AVAX has established a higher low, which could signal the beginning of a bullish trend if it breaks past the key $28 resistance level.

According to Daan's analysis, this break would indicate a shift in market structure from bearish to bullish. If the price moves beyond $28, it could quickly target the low-$30 price range.

Should AVAX reclaim these levels, investors could anticipate an aggressive upward move as demand builds, similar to the momentum seen in last year’s October-November surge. Daan also noted that such a move could lead to an influx of buyers, creating substantial demand that would further drive the price higher.

With growing optimism around AVAX, traders are watching closely for a potential breakout. Many see the $28 level as the critical point determining whether AVAX can sustain this upward momentum and potentially initiate a new rally.

AVAX Price Action 

AVAX trades at $23.82, following an 18% surge from local lows. The price has recently moved above the 4-hour 200 exponential moving average (EMA) at $23.23, a critical strength indicator in shorter time frames.

A sustained uptrend could form in the short term when the price is above this level and maintained as support. This shift has sparked renewed optimism among traders and investors.

For bulls to maintain control and continue pushing AVAX higher, the price must break past the local high of $28.01. A successful move above this resistance could lead to further upward momentum, potentially targeting higher price ranges in the days ahead.

However, if AVAX fails to break above this key resistance level, the price may face a pullback, likely retesting the lower demand zone near $20, which has served as strong support during recent corrections.

This price action is being closely watched, as it could determine whether AVAX continues its recovery or faces another downturn. Investors are waiting to see if AVAX can break through resistance and start a stronger rally.

Featured image from Dall-E, chart from TradingView

Source: Avalanche (AVAX) Ready To Target $28: Investors Expect A Reversal