AVAX price to set new highs at $170 as Avalanche prepares for lift-off
- AVAX has seen a minor retracement to collect liquidity resting below the November 20 swing low at $114.
- This move has resulted in a quick 9% run-up that could lead to a 50% climb.
- A breakdown of the $97.38 support level will invalidate the bullish thesis.
AVAX price has seen a massive upswing over the last month, pushing its market value into the triple-digit territory. While Avalanche undergoes a short-term retracement, the upside is likely to improve if the bulls hold critical levels.
AVAX price ready for takeoff
AVAX price rose 52% between November 18 and November 22, reaching a new high at $147. Further attempts to surpass this barrier were quickly undone as Avalanche continued to descend. This correction sliced through the 161.8% Fibonacci retracement level at $130 and bounced off the $110-to-$116 demand zone.
A quick dip into this area provided AVAX price the necessary oomph and allowed it to rally 10% to $122, where it is trading at the time of writing. Going forward, investors can expect Avalanche price to overcome the $130 hurdle and make a run for the $170 round number, just below the 261.8% Fibonacci retracement level at $177.
This climb would represent a 55% advance from $110 and set a new all-time high at $177.
AVAX/USDT 4-hour chart
The bullish scenario is intact as long as the AVAX price holds above the $110-o-$116 demand zone. However, a breakdown of this level could lead to a 12% crash to the immediate support level at $97.
A daily close below this level will invalidate the bullish thesis by creating a lower low. In such a situation, market participants can expect AVAX price to retrace another 9% to tag the $88.01 support level.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
