Analyst Ted Pillows targets a breakout to $30 if AVAX holds above $26.
On-chain data shows strong resistance at $27.91 but potential upside to $35.21.
Whale sell-offs total $780 million, raising concerns over long-term sustainability.
As the crypto market anticipates an upcoming altcoin season, cryptos like Avalanche are aiming for a bullish comeback. As the AVAX price trend sustains dominance above its critical support level, analysts are anticipating a breakout rally.
Will this breakout rally in Avalanche lead to a price surge and fuel the next crypto bull market? Let’s find out.
Avalanche Technical Analysis: AVAX Eyes $26.65 Resistance
In the 4-hour price chart, the Avalanche price trend has surpassed a local resistance trendline. This marks a bullish breakout of a descending triangle pattern, which previously followed a bearish trend.
With the breakout rally, the AVAX price trend is aiming to challenge the 23.6% Fibonacci level at $26.65. Currently, AVAX trades at $25.48, with a bullish recovery in the momentum indicators.
The MACD and signal lines are on a positive journey, aiming to reach the halfway level. Meanwhile, the positive histograms are maintaining a steady flow, signaling growing bullish momentum.
Furthermore, the 4-hour RSI line has bounced off from extremely oversold regions to the midline, marking a significant recovery in buying strength. Amid the positive technical signals, the Fibonacci levels paint a price target at the 38.2% level at $28.49. This marks the previous high before the descending triangle formed.
Completion of the reversal run to $28.49 will confirm a rounding bottom reversal, significantly increasing the upside potential to $37.82. On the flip side, the key support levels for AVAX stand at $24 and $22.60.
Analyst Insights: Will Avalanche Price Break $30?
Highlighting a similar descending triangle pattern, crypto analyst Ted Pillows suggests a potential reversal run in Avalanche. With three consecutive bullish candles, the AVAX price trend has held its ground at a crucial support zone.
Avalanche is still holding its support zone.$AVAX buyers are stepping in which is a good sign.
All I need now is a 4H close above $26 and AVAX will run hard 🚀 pic.twitter.com/fdwJEqzKeJ
— Ted (@TedPillows) February 10, 2025
Avalanche is still holding its support zone. buyers are stepping in which is a good sign.
All I need now is a 4H close above $26 and AVAX will run hard 🚀
— Ted (@TedPillows)
With the short-term recovery, the analyst anticipates a breakout run if AVAX sustains a four-hour closing above $26. Ted Pillows’ price target for Avalanche extends to nearly $30, signaling a strong breakout opportunity.
Whale Activity: Institutional Holdings Declining
Despite the short-term recovery, the overall AVAX holdings by investors have significantly declined since early February. Based on IntoTheBlock’s balance-by-holding indicator, a major shift in large holdings has occurred.
Investors holding over $10 million worth of Avalanche have offloaded $780 million, dropping holdings from $2.29 billion to $1.51 billion. Meanwhile, holdings between $1 million to $10 million have dropped slightly to $557 million from $559 million.
This marks a lesser decline in mid-level holdings, compared to whale movements. The overall AVAX holdings have dropped from $3.62 billion to $2.66 billion, reflecting a bearish sentiment among large investors.
On-Chain Indicators: Bullish Supply Zone Nearing
Based on IntoTheBlock data, the Global In-Out-Of-Money Indicator reveals a stronger supply zone forming near Avalanche. The immediate supply zone exchanges between $25.78 and $27.98, holding 6.2 million AVAX tokens.
However, the short-term recovery has reached the upper boundary of the At-The-Money zone, which exchanges between $23.41 and $25.78. This zone contains 15.31 million AVAX tokens, now turning almost completely profitable.
As the At-The-Money zone flips bullish, the AVAX rally is likely to extend and challenge immediate resistance. Hence, the On-Chain Indicator pins the next price targets at $27.91, followed by a crucial supply zone up to $35.21.
On the flip side, key support levels stand at $23.41 and $21.38.