Avalanche (AVAX) Hits 7-Month High After Key Resistance Breakout – Analysts Eyes $40 Next

Avalanche (AVAX) has reclaimed a crucial level as support after its recent rally, fueled by multiple bullish developments for the ecosystem. Some analysts forecast a massive rally toward the start-of-year highs if the momentum holds.

On Thursday, Avalanche hit a seven-month high of $29.99 after breaking out of its multi-month accumulation range and turning the $26.50 resistance into support for the first time since February.

The cryptocurrency has been rallying over the past few days, currently printing five consecutive green candles in the daily timeframe. Analyst Sjuul from AltCryptoGems noted that AVAX had been pushing on the key resistance, holding a series of higher local lows before smashing past this area.

A breakout from this resistance level could set the stage for a rally to the start-of-year range between $40-$45, the market watcher signaled in a previous analysis.

Similarly, Rekt Capital highlighted that Avalanche had been “working to build a cluster of stability” since late July, which resembles the mid-2024 re-accumulation range that preceded Q4 2024’s breakout.

According to the analyst, “if repeated, could open the green pathway toward the red resistance region that is increasingly confluent with the Macro Wedge top.” He explained that AVAX has been forming Higher Lows in the weekly timeframe, positioning the price slightly higher with each retest.

As a result, a weekly close above the $26 area, followed by a successful post-breakout retest, would enable AVAX price to reclaim the $30 resistance region and attempt to retest the Macro Wedge Top, currently around the $35 mark.

Market watcher CW pointed out that Avalanche’s next sell wall exists around the $35-$36 area, suggesting that the cryptocurrency could retest this level in the coming days if momentum continues.

Meanwhile, the next major support zone sits around the $24 level, which could be revisited in case of a rejection from the key resistance.

As the market turns green again, multiple bullish developments have also fueled AVAX’s rally. According to recent reports, the Avalanche Foundation, the nonprofit behind the project, is seeking to raise $1 billion to establish two US-based crypto treasury vehicles.

One of the deals, led by Hivemind Capital and advised by SkyBridge’s founder Anthony Scaramucci, aims to raise up to $500 million in a private investment in a Nasdaq-traded company. It is expected to be completed by the end of September.

The other deal, which is expected to be closed in October, seeks to raise the same amount and involves a special purpose acquisition (SPAC) vehicle sponsored by Dragonfly Capital.

Notably, the funds from the two deals will reportedly be destined to purchase millions of AVAX from the Avalanche Foundation’s reserves, which could continue to fuel momentum for the cryptocurrency.

Meanwhile, 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, including robotaxi fleets.

Additionally, the company behind the Avalanche Network also signed a Memorandum of Understanding (MoU) agreement with WeBlock to push Real-World Asset (RWA) tokenization and stablecoins in South Korea.

As of this writing, Avalanche trades at $29.04, a 22.7% increase in the monthly timeframe.