Avalanche (AVAX) Price Hovers Near $220 and Eyes a Major Breakout. What Happens Next?

After a period of tumultuous volatility and uncertain sentiment, it appears that Avalanche (AVAX) is finally regaining its strength.

Avalanche (AVAX) has been showing signs of a potential breakout as the crypto hovers in the mid-$21s and eyes a crucial resistance level at $23.

After a period of tumultuous volatility and uncertain sentiment, it appears that Avalanche (AVAX) is finally regaining its strength. With AVAX trading around $21.82 and getting on everyone’s watch lists, excitement is just starting to build up across the crypto market.

Investors are waiting to see if this recent momentum could instate a significant AVAX price surge. Avalanche has battled some strong storms in the last few weeks, having been impacted by the macro environment and changing market sentiment significantly. The altcoin is now benefiting greatly from Bitcoin’s relatively stable position, which has anchored the overall market.

As the broader recovery builds, attention is on whether AVAX can overcome its immediate resistance levels and build a stronger bullish trend. The next couple of days may be critical for the AVAX price surge and the altcoin’s short-term direction.

Is Avalanche Preparing For A Massive Breakout?

The current trading environment for Avalanche is demonstrating tight consolidation, which is defined by the support level at $21.50 and resistance at $23.00. Low volatility periods normally suggest that a big move is around the corner. Traders and analysts are clearly waiting with anticipation, studying each price level to catch the next potential Avalanche (AVAX) price momentum.

Technicals are mixed at the moment. The relative strength index (RSI) is neutral but leaning slightly bearish. The moving average convergence divergence (MACD) has displayed some slight selling pressure, but does not show any reversal signals yet.

Even with the mixed technical indications, the price consolidation zone at $21.60 is important. A solid bounce back from this level could bring forth the Avalanche price rally that bullish traders have anticipated.

AVAX Bullish Chart Signals Emerging?

While caution dominates much of the trading community, certain bullish signs cannot be ignored. The current AVAX bullish chart formation, characterized by tightening price action and steady volume, mirrors setups seen before notable breakouts in past cycles.

Traders are closely watching how Avalanche behaves if it retests the $21.50 support zone once again. In terms of broader market dynamics, improving sentiment in the crypto space could offer additional support. Bitcoin’s stability near major support levels acts as a positive external factor, encouraging risk-on behavior among altcoin traders.

Should market-wide momentum continue, it could accelerate the AVAX price surge and create a snowball effect, driving the Avalanche price much higher.

What Could Fuel The Next Avalanche Price Surge?

In addition to technical indicators, some fundamental characteristics could bolster an argument for an AVAX breakout.

Growing 24-hour trading volume, recently at $355.48 million, shows an increase in trader/institutional interest in AVAX.

Also, Avalanche has a strong market cap of $9.07 billion, which shows that it has sustained some movement in a generally bearish market.

Furthermore, developments like a potential AVAX token burn and an expanding ecosystem within DeFi and the gaming sector have the potential to act as catalysts as user adoption continues to grow and projects continue to launch through the Avalanche blockchain and its various channels.

All of these components add to the idea that the trajectory of the Avalanche Price Surge is approaching a strong uptick.

Can AVAX Finally Smash The $23 Resistance?

The $23 level is becoming a clear battleground for AVAX bulls and bears. A confirmed breakout above this resistance level could result in a strong surge in buy volume, validating the AVAX bullish chart setups that are currently in progress.

If this move takes place, the Avalanche price will likely extend to new levels and potentially make new short-term highs for the token. On the other hand, if Avalanche does not break out and drops below the $21.50 support, we would likely see a short-term pullback.

However, the sentiment seems to be improving, volumes are beginning to increase, and with the emerging technical setups indicating possible strength, the sentiment looks to be slightly favoring the bulls at the moment.