Avalanche (AVAX) made a significant move, breaking through a key resistance level and rising over 20% in less than 24 hours. This surge has reignited bullish sentiment among analysts and investors, who are now closely monitoring AVAX’s potential to hit the key $50 level in the coming days. A breakout signals a change in market dynamics, with rising demand and growing optimism driving price action.

Prominent cryptocurrency analyst and investor Kaleo shared a detailed technical analysis of X, suggesting that once AVAX breaks above $50, it could trigger a massive rally. He highlighted the importance of this psychological and technical level as a gateway to exponential price increases, potentially attracting more momentum-driven buyers.

Avalanche’s recent performance reflects broader cryptocurrency market strength as key altcoins enjoy renewed interest amid a bullish cycle. With favorable market conditions, AVAX could continue its uptrend if it continues above current levels. However, investors are also cautious and aware of the potential for profit-taking or resistance near the $50 threshold.

Avalanche is preparing for a rally

Avalanche is on the verge of a massive rally, closely following a pattern reminiscent of its recent bull cycle. The price has surged impressively above key supply levels and is now less than 15% from the critical $50 level. This level has caught the attention of both traders and analysts because a break above it could signal the beginning of an aggressive growth phase.

Kaleo recently released technical analysis on Xemphasizing the importance of the $50 level. According to Kaleo, breaking this psychological and technical barrier could trigger massive growth, potentially doubling AVAX’s value in a compact period of time.

He also highlighted the AVAXBTC chartwhich shows a similar breakout pattern, confirming the bullish sentiment around Avalanche. Kaleo predicts that if momentum continues, AVAX could reach $100 quickly.

Despite the optimism, the potential for a market-wide correction introduces some caution. As Bitcoin shows signs of a possible pullback to consolidate and gain momentum, AVAX may face momentary pullbacks.

However, such corrections can create buying opportunities for those looking for long-term gains. As Avalanche approaches this key milestone, investors are anxious to see if it can break above $50 and deliver the explosive growth that analysts have predicted.

AVAX is testing fresh supply levels

Avalanche is trading at $43.6, the highest price level since April after a powerful break above key resistance around $35. This impressive price action has renewed optimism among investors and analysts, with AVAX demonstrating resilience in its pursuit of fresh supply levels.

Currently, it seems that AVAX is able to overcome the critical level of $50, a psychological and technical level that may determine the next phase of growth. However, there is a possibility that the token could consolidate below this level in the coming days. Consolidation would allow the market to absorb recent gains and gain momentum to push higher.

On the other hand, if AVAX struggles to regain $50, it could trigger a return to lower demand zones, providing the necessary support to secure its next stage of growth. Such a pullback would not represent a bearish trend, but rather a vigorous correction that could strengthen AVAX’s trajectory towards sustained growth.

As Avalanche’s stock continues to rise, investors are closely monitoring price action and volume to gauge the likelihood of further gains. The $50 level remains a critical level to watch as a successful breakout could pave the way to fresh highs and solidify AVAX’s bullish momentum.

Featured image from Dall-E, chart from TradingView