Avalanche (AVAX) Price Action Hints at Explosive Move to $28 Target

Avalanche's AVAX token is flashing signals that could make traditional portfolio managers reach for the antacid.

Technical Setup Suggests a Breakout

The charts are whispering about a potential expansion phase. Key momentum indicators and pattern formations are aligning, pointing toward a significant move north. It's not just hopium—the structure on the higher timeframes shows a consolidation that historically precedes a directional burst.

The $28 Horizon

All eyes are on that $28 price target. It represents a critical resistance zone that, if convincingly taken out, could open the floodgates for further gains. The path there isn't a straight line, but the market's current energy suggests it's gearing up for the attempt. Forget the slow-and-steady pension fund playbook; this is crypto's version of a moonshot blueprint.

Why This Move Matters

A successful push to this level would do more than just pad speculator wallets. It would reaffirm Avalanche's position in the layer-one race, potentially drawing fresh capital and developer attention away from its rivals. In a sector where narrative is half the battle, a strong price move is the ultimate marketing campaign.

The smart money is watching the tape, not the talking heads on financial news—after all, most of them still think a 'block' is something to put under a wobbly table. AVAX is either coiling for a spring or setting a trap; the next few candles will tell which.

AVAX Price Faces Bearish Pressure

AVAX maintains a bearish outlook on the weekly chart, trading around $12.53 and below all SMAs: 20, 50, 100, and 200. The moving average ribbon displays a downward trend, forming a bearish arrangement. The price action maintains lower highs and lower lows, which establish a weak trend with no reversal signal yet forming on the weekly chart.

The immediate support ranges from $12.00 to $11.80. As the price falls, the initial target for a decline WOULD be set at $10.00, and then the large demand level at $8.60 through to $9.00. As for a stronger fall, the target would be set around the lower boundary at $7.50 through to $8.00.

For any relief rally, the initial resistance zone is from $14.50 to $15.00, and again from $18.00 to $19.00. The major resistance zone and invalidation point is from $20.00 to $21.50, around the 20 and 50 SMAs. The macro resistance zone remains at the $25.80 to $28.00 levels, around the 100 and 200 SMAs, only when the overall trend is to rebuild.

Technical Indicators Confirm Selling Pressure

The RSI for the week is at 35, which is well below the midpoint at 50 on the chart. This confirms the bearish momentum and the selling activity on the chart. RSI is currently moving towards the oversold level but is not at the extremes as yet, so the possibility of downside exists despite the fact that momentum seems to be subsiding somewhat.

The MACD (12, 26, 9) is still below the zero line, with the MACD line plotted below the signal line and a red histogram. This pattern continues to support a bearish momentum trend on the weekly chart, failing to provide a bullish crossover.