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Avalanche (AVAX) price breaks out of long-term resistance, will a strong rally follow?

The price of Avalanche (AVAX) has broken above the long-term resistance zone and is showing decisive bullish signals. It is expected to continue rising in the near future.

Long-Term Resistance Zone

The price of Avalanche (AVAX) confirmed the previous resistance zone at $30 as support (green arrow) during the week from January 22 to 28, 2024. This action has formed a higher low and went a long way long in confirming that the long-term trend has turned bullish.

Indeed, it has continued to climb higher since then and broke above the long-term resistance zone at $55 last week.

The breakout occurred with a large bullish candle and high trading volume, confirming the validity of the breakout.

The weekly RSI (Relative Strength Index) has returned to the overbought zone and is trending upwards, showing that the bulls are in control of the market.

Therefore, the AVAX price could rise by 61.53% to the next long-term resistance zone at $100 in the near future.

AVAX/USDT weekly chart. Source: TradingView

Daily Outlook

The daily chart shows that the AVAX price has broken above the horizontal resistance zone at $49 and confirmed it as support over the past few days (green arrow).

This indicates that bulls are buying in as the price dips to the breakout level, often leading to the continuation of the uptrend.

The daily RSI has entered the overbought zone and is trending upwards, supporting the possibility of further increases.

Therefore, the AVAX price could rise to the nearest horizontal resistance zone at $69 in the coming days.

AVAX/USDT daily chart. Source: TradingView

Conclusion

The most likely scenario suggests that the AVAX price will continue to rise in the near future. The nearest target is $69 and higher towards $100.

Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.

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