- Avalanche has shown steady recovery signs with price forming higher lows and testing the key breakout region.
- Analysts view $20 as a solid base that could support a sharp rally toward the $50 resistance target soon.
- AVAX remains among the few altcoins showing strength after long consolidation suggesting possible renewed demand.
Avalanche (AVAX) is showing early signs of reversal as its price consolidates around $20 following months of subdued movement. A recent technical chart shared by market analyst Razz3E indicates that AVAX may be nearing the end of a deep consolidation phase that has tested trader patience throughout 2025.
According to the analyst, AVAX’s prolonged range-bound structure could soon give way to a significant upside breakout. Razz3E noted that heavily undervalued charts often “tend to break out aggressively,” suggesting that AVAX might be preparing for a strong directional move.
At the time of the update, AVAX traded near $20.24, holding firm after a sharp retracement from the $33 resistance zone. The chart projects an upward trajectory with a potential breakout toward $50, marking a key level that traders are watching closely.
This pattern reflects a shift in sentiment as the token forms higher lows, a common precursor to breakout formations on daily timeframes. The strong rebound signals renewed interest from market participants who had been waiting for a confirmation of trend reversal.
Technical Indicators Point Toward Potential Upside
The daily chart illustrates a prolonged compression zone stretching through mid-2025, with the price fluctuating between $12.80 and $33.00. Such formations often precede decisive breakouts, as accumulation builds before market momentum accelerates.
Razz3E commented that AVAX’s current price level appears “unreasonable” in relation to its historical performance and underlying technical foundation. The statement suggests that the asset may be significantly undervalued compared to its previous market highs.
The illustrated green arrow on the TradingView chart projects a potential upside movement extending beyond $40, representing a 100% increase from current levels. The move could gain traction if the market breaks through the $25–$30 resistance zone, which has historically acted as a ceiling during previous rallies.
Market sentiment around Avalanche remains cautiously optimistic. Traders observing the $20 range note that the formation resembles earlier consolidation patterns that preceded sharp recoveries in the 2021 and 2023 cycles.
Could Avalanche be preparing for another major recovery phase after months of stagnation and market compression?
Market Reaction and Broader Price Outlook
The post by Razz3E gained notable engagement from the trading community, sparking discussions about Avalanche’s potential performance heading into 2026. While some traders expressed caution, others agreed that the current setup aligns with early-stage breakout signals.
Responding to community remarks predicting lower price levels, Razz3E countered that there was “no room for pessimism here,” reinforcing confidence in a bullish outcome. The statement reflects the prevailing belief among bullish traders that AVAX’s technical structure remains intact despite short-term volatility.
Price history reveals that AVAX tends to consolidate deeply before executing strong rallies. During its previous upward cycle, the token surged from under $15 to above $140, demonstrating its capacity for rapid expansion once breakout conditions were confirmed.
The upcoming weeks are expected to determine whether AVAX maintains its hold above $20. Sustained support at this level would strengthen the case for a larger breakout. On the other hand, failure to hold could prolong the consolidation phase and delay momentum recovery.
Despite mixed sentiment, the $50 projection serves as a short-term psychological target for traders eyeing confirmation of renewed strength in Avalanche’s price structure. The confluence of long-term compression, market undervaluation, and technical readiness positions AVAX among the most closely watched assets in the current market cycle.
