Avalanche Set for 30% Surge Following Cup-and-Handle Pattern Breakout

After recently reclaiming a significant level, Avalanche (AVAX) is encountering resistance around the $27 mark. Analysts believe that maintaining this position may lead to a rally towards subsequent resistance thresholds.

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Avalanche Aims for $32 Resistance

Avalanche has experienced a surge of nearly 40% over the last week, climbing from $19 to reach a three-month high of $26.84 earlier this week. The cryptocurrency previously dropped to an 18-month low of $14.66 in early April but has since rebounded by about 37% leading up to its recent breakout.

During this market recovery, AVAX has broken free from a five-month downward trend, which saw the token plummet more than 73% from its Q4 2024 peak. Additionally, Avalanche established a two-month Cup-and-Handle pattern, with a key resistance level at $23.

Analyst Sjuul from AltCryptoGems noted that this formation has a clear target and aligns with the next resistance point around $32. This level was lost in early February and was previously an essential area of resistance and support prior to the Q4 2024 rally and early 2025 market fluctuations.

Following the breakout above the neckline and the reclaiming of this level over the weekend, the analyst emphasized that the target is now apparent. Consequently, Avalanche may be poised for another 30% increase towards the $32 level.

In contrast, analyst CW pointed out that AVAX faces a significant sell wall near the $27 mark, where it has encountered resistance in recent days. However, if it surpasses this obstruction, it could potentially experience a rise to $36 before encountering another selling block near $38.5.

Another barrier is positioned between $42.5 and $46.5. Conversely, if the cryptocurrency is rejected at the initial resistance, the price may revert to the breakout levels and the downward trend line, approximately around $20, where a selling wall exists that could act as support.

Could AVAX Emulate the Patterns of BTC and SOL?

Crypto Amsterdam observed that several altcoins, including Avalanche, are displaying formations similar to those seen in Bitcoin’s (BTC) and Solana’s (SOL) charts. The analyst described the setup as following a Macro range, divided into five distinct stages.

The first stage occurs during a bull market, where a cryptocurrency quickly approaches its peaks, defining the upper limit of the range. The second phase appears at the onset of a bear market, during which the token experiences steep lower lows and highs approaching the lower end of the range before transitioning into the accumulation phase. In this phase, the cryptocurrency falls below the range’s low.

During the fourth stage, the cryptocurrency records its first higher high and returns to the range lows. Finally, during the fifth stage, the cryptocurrency aims for the previous cycle’s high, breaking through the upper limit of the range after reclaiming the mid-zone.

Crypto Amsterdam highlighted that AVAX’s chart exemplifies a “clean mini cycle.” After reaching an all-time high (ATH) of $146 in November 2021, Avalanche established its range between $20 and $130, dipping below the low of this range in mid-2022.

The cryptocurrency regained the low of the range in late 2023, concluding the third stage and entering the fourth during the early 2024 rally. Since then, it has retested the range lows after a deviation, successfully recapturing this level during last week’s breakout.

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Should Avalanche persist in this trend, it will need to reclaim the mid-range around $75 to surge towards the upper boundary and potentially achieve a new all-time high. However, if it drops below the recent local low, the setup could be deemed invalid.

Featured Image from Unsplash.com, Chart from TradingView.com