Avalanche (AVAX) Price Prediction: Wyckoff Accumulation Points to Potential Breakout

Is Avalanche (AVAX) gearing up for a major rally? Wyckoff accumulation, strong on-chain activity, and potential ETF catalysts suggest a bullish outlook.

Avalanche (AVAX) has been showing promising signs lately. With strong on-chain activity, potential ETF catalysts, and a textbook Wyckoff accumulation pattern emerging, could AVAX be on the verge of a significant price breakout?

Avalanche's Ecosystem on the Rise

Avalanche's Layer 1 ecosystem is experiencing impressive growth. Monthly active addresses across subnets and Layer 1 chains have surged, exceeding 6 million. This sustained user activity suggests real adoption, laying a solid foundation for potential price appreciation. Historically, such consistent usage growth often leads to price catch-up.

Technical Analysis: Eyes on $27 and Beyond

Technically, AVAX appears to be setting up for a recovery toward the $27 zone. According to Tradenalytics, a clean recovery setup is visible on the chart, contingent on holding a key support trendline. Furthermore, EWcycles suggests AVAX might be entering a new Wave 3 in Elliott Wave terms, potentially targeting $85 initially, with a broader Wave (3) aiming for the $211 to $250 range. This multi-leg rally scenario depends on current levels holding firm.

Wyckoff Accumulation Pattern Emerges

Adding to the bullish narrative, a weekly chart reveals a textbook Wyckoff accumulation pattern. AVAX has been holding firm at the lower end of a multi-month range, with support consistently appearing near the $13 to $16 zone. The next significant challenge lies in the $31 to $37 region, marked by a visible supply zone. A strong break through $37 would signal a shift in favor of the bulls.

ETF Approval: A Potential Catalyst?

The potential approval of Bitwise's 10 Crypto Index Fund (BITW), which includes AVAX, could act as a significant catalyst. A positive decision could provide AVAX with fresh institutional exposure, potentially pushing it beyond its current $18 to $20 trading range.

Final Thoughts: Buckle Up, AVAX Hodlers!

Avalanche seems to be quietly setting the stage for something big. With its growing ecosystem, solid technicals, and the potential for ETF-driven momentum, AVAX's price appears poised to catch up. Whether it's the Wyckoff accumulation hinting at smart money buying, or the Elliott Wave theory suggesting a rally towards $85, the foundation for a multi-leg surge seems to be in place. So, keep those seatbelts fastened, folks—it looks like AVAX is about to take off!