Avalanche Consolidates After Breaking Out of Ascending Broadening Wedge

Key Insights:

• Ongoing correction resembles past patterns, but experts warn of further downside without clear signs.
• Analysts identify potential for a $9 target amid complex corrective patterns and risks of further downside.
• Experts recommend waiting for confirmation of a five-wave upward movement before concluding a market bottom.

Avalanche ($AVAX) is currently consolidating after a recent breakout from a right-angled ascending broadening wedge pattern. This development has drawn attention in the crypto market as traders monitor the price movements. The breakout has raised questions about the future direction of the asset, with some experts suggesting a possible target of $9.

Market Overview and Current Price Trend

As of the time of writing, Avalanche is priced at $13.53, showing a slight increase of 1.01% over the last 24 hours. The overall trend since March 2024 has been corrective. This correction has lasted for several months, resembling a similar pattern seen in 2021–2023. 

During that period, the market underwent a correction that took around 18 months to complete. This historical comparison raises important questions about whether the current correction will follow a similar timeline or continue longer.

Analyst More Crypto Online notes that the ongoing price movement has shown characteristics of a complex corrective pattern. Also mentioned that “the decline could represent a WXYXZ correction,” which is a more complicated structure that may allow for upside in the future. However, without clear signs of a bottom, the risks of further downside remain.

Technical Analysis shows Uncertain Bottom

However, Analyst Ali_charts pointed out that the price of Avalanche remains within a crucial zone following the breakout. The current consolidation indicates the possibility of a move toward a target price of $9. This target has been identified based on the technical patterns observed in the market. 

While the breakout from the ascending broadening wedge suggests a potential price movement, there are still doubts about whether the market has found a sustainable bottom. The price movement could be part of a larger five-wave structure, which is a common pattern in technical analysis.

Experts recommend waiting for confirmation of a five-wave move up on the micro timeframe before concluding that a bottom has formed. Without this confirmation, AVAX’s possibility of further declines cannot be ruled out. The market remains in a cautious phase, where bulls may attempt to push the price higher, but the lack of decisive signals leaves room for uncertainty.

Strategy Moving Forward

In the coming days, traders are likely to remain cautious as Avalanche continues its consolidation. The market is at a critical zone where reactions could occur, but no clear signs of a reversal have appeared so far. Given the current market conditions and the complexity of the correction, traders are advised to monitor developments closely before making significant moves.