The Avalanche (AVAX) price has more than doubled in December, reaching a new yearly high today.
AVAX is approaching the $50 level, which has not been reached since May 2022. Can it be done before the end of the year?
AVAX Reaches Another Yearly High
The AVAX price has increased quickly since October, when it was trading at a low of $8.65. In 63 days, the price increased by 425%, culminating with a new yearly high of $46.40 today.
AVAX broke out from a 750-day descending resistance trend line during the ascent, which had been in place since the all-time high. This accelerated the rate of increase further.
Since October, AVAX has created eight bullish weekly candlesticks in 9 weeks.AVAX/USD Weekly Chart. Source: TradingView
The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset.
Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite. The weekly RSI is increasing and is above 50, both signs of a bullish trend.
Read More: How to Buy Avalanche (AVAX)?
What do Analysts Say?
Cryptocurrency traders and analysts on X have a bullish view of the future trend.
Bluntz Capital tweeted a bullish wave count, indicating the AVAX price will complete the fifth and final wave near $55.AVAX/USDT Four-Hour Chart. Source: X
Flash is also bullish and has a target of $65. His optimistic outlook is due to a breakout from a long-term pattern and movement above a horizontal resistance area.
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AVAX Price Prediction: $50 Next?
The technical analysis of the daily time frame gives a bullish outlook. Technical analysts utilize the Elliott Wave theory to ascertain the trend’s direction by studying recurring long-term price patterns and investor psychology.
The most likely count suggests that AVAX is in the fifth and final wave of an upward movement that began in September.
Wave five has extended and has more than 0.618 times the length of waves one and three combined.
If AVAX continues increasing, the next target will be $59, giving wave five the same length as waves one and three combined. This will amount to an increase of another 28%. The AVAX price can reach the target in December if it maintains its rate of increase.
The daily RSI supports this possibility since the indicator broke out from its bearish divergence trend line (green) and is increasing.AVAX/USDT Daily Chart. Source: TradingView
Despite this bullish AVAX price prediction, a daily close below $44 will mean the top is in. If that happens, the AVAX price could fall by 50% to the closest support at $22.
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