Avalanche (AVAX) Price Holds Key Support, But Analyst Warns Rally Could Be At Risk

After a strong price performance over the past month, driven by growing interest in the Avalanche ecosystem, AVAX now faces a key resistance area that could delay its long-awaited ￰0￱ Reading: Solana DATs Arrive In Australia: Fitell Corporation Announces $100M SOL Treasury Strategy Institutional Momentum Fuels Avalanche Price On Wednesday, Avalanche continued its recovery from the start-of-week pullback and is currently retesting the $34 area as ￰1￱ cryptocurrency recently fell to the $29 level, but quickly bounced toward a seven-month high of $36.1 on Tuesday, fueled by institutional interest in the ￰2￱ Growing Systems recently announced its rebrand to a crypto treasury company under the name AVAX One, marking the first Nasdaq-listed entity focused on ￰3￱ company, supported by Hivemind Capital and SkyBridge Capital founder Anthony Scaramucci, aims to raise $550 million to accumulate the cryptocurrency.

Notably, the Avalanche Foundation, the nonprofit behind the project, also revealed it was seeking to raise $1 billion to establish two US-based crypto treasury ￰4￱ week, South Korean crypto custodian BDACS launched KRW1, the country’s first Korean won–pegged stablecoin, on Avalanche. Previously, Ava Labs secured a strategic partnership with Toyota Blockchain Lab to build a blockchain-based system, the Mobility Open Network (MON), designed to pave the road for new emerging use cases such as robotaxi ￰5￱ Monthly Close Holds Rally’s Key Analyst Rekt Capital noted that the cryptocurrency has had a strong three-month rally within its Macro Wedge pattern but also cautioned that there’s “further work to be done” for a bullish trend ￰6￱ cryptocurrency has seen a 43% increase in the monthly timeframe, turning the $30 level into support two weeks ￰7￱ then, the AVAX price has attempted to reclaim the $35 resistance twice, but failed to sustain the ￰8￱ has been trading inside a Macro wedge pattern since the start of 2024, with the price steadily hovering between the formation’s upper and lower ￰9￱ recent rally has sent the price toward the pattern’s resistance zone, with the breakout level sitting around the $38.40 ￰10￱ to the analysis, AVAX’s next crucial step is to close September above the Macro Downtrend and have a post-breakout retest of this level as support.

A monthly close above this area would “open the path toward repeating bullish history similar to mid-2021 and early 2024.” Related Reading: Analyst Says Ethereum Bounce Is Imminent As BitMine Continues To Accumulate Failing to secure a monthly close above the $38.40 area could see Avalanche up for a retest of the $29-$30 support, further risking a drop toward the monthly opening of $23.6. To target the Macro Wedge resistance, the cryptocurrency still must reclaim the $35-$36 zone, where the next major sell wall is ￰11￱ the warning, the analyst detailed that a retest of the support region could “extend base-building further into Q4, ultimately enabling a more sustainable breakout attempt later.” As of this writing, AVAX is trading at $33.75, a 1% decline in the daily ￰12￱ Image from Unsplash.

com, Chart from ￰13￱