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AVAX GEARING Up for an Incredible Bull Run: A Comprehensive Analysis

AVAX GEARING up for a HUGE RALLY!
AVAX GEARING up for a HUGE RALLY!

Avalanche (AVAX), a prominent layer-1 blockchain platform, has recently witnessed a remarkable price surge, surging nearly 400% in just 77 days. This electrifying rally has captivated the attention of investors worldwide, raising expectations for a potential bull run that could catapult AVAX to unprecedented heights.

Intriguing Price Patterns and Breakouts

While the short-term price action on the 1-hour timeframe exhibits a diagonal pattern, making precise predictions challenging, JB remains bullish on AVAX’s long-term trajectory. The daily timeframe reveals a notable breakout pattern, suggesting that the recent price dip may have bottomed out around $861,000.

A key area of support turned resistance is identified between $42.89 and $41.8. This zone previously acted as a support level, but it could now flip into a formidable resistance barrier as the price advances. Rejection at the 0.5 Fibonacci level further supports the notion of a potential retracement.

Possible Retracement Levels and Short-Term Corrections

A retracement to the 50% Fibonacci level at $19.22 and the 88.2% Fibonacci level at $10.41 could be expected as AVAX cools off from its recent surge. Short-term corrections are likely to occur, with a potential target around $20.

Traders may consider employing a short position, targeting a 52% pullback from the upper end of the recent price range. However, it’s crucial to exercise caution and closely monitor market conditions before initiating any short trades.

Long-Term Outlook and Potential Returns

The weekly chart paints an optimistic picture for AVAX’s long-term outlook. The recent 398% push to the upside reinforces the belief that the bottom is in place. Fibonacci levels, including $39.35, $62, $140, and $196, could act as potential resistance points.

Long-term targets suggest the possibility of a staggering 2,000% return on investment, but reaching these levels will require AVAX to break through its previous all-time high of $147. A conservative target of $287, representing a 3,200% return on investment from an entry point of $8, is considered more achievable.

More speculative scenarios envision AVAX reaching $459, which would yield a 5,200% return. However, achieving this level would be an immense challenge for the cryptocurrency, and experts remain skeptical of such a possibility.

Even more ambitious scenarios portray AVAX as a 100x project, potentially generating a mind-boggling 13,720% return. While this scenario is highly speculative, it highlights the immense potential that AVAX holds.

Addressing Skepticism and Retracing Back to Reality

Despite the optimistic outlook, JB remains skeptical about AVAX’s ability to surpass $1,000. JB suggests a double top scenario, where the price consolidates around $147 before retesting the previous all-time high.

JB also discuss the possibility of retracements to the 50% and 618 Fibonacci levels, which could provide buying opportunities for traders. JB also considers different technical structures, including a five-wave Elliott wave move and potential wave two, three, four, and five scenarios.

Conclusion and Trading Advice

The analysis presented above highlights the potential for AVAX to embark on a remarkable bull run. However, it’s crucial to exercise caution and approach trading with a calculated risk management strategy.

Key Fibonacci levels, such as $62 (50% FIB) and $100 (618 FIB), should be closely monitored for potential support and resistance zones. Engaging with the cryptocurrency community and seeking insights from experienced traders can also be beneficial.

Remember, trading always involves inherent risks, and it’s essential to conduct thorough research, assess market conditions, and use tight stop losses to mitigate potential losses.

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