Avalanche bulls target $30 amid 20% rally potential

Avalanche (CRYPTO:AVAX) has extended its upward momentum, trading above $21 with a 7% gain on Monday after rallying nearly 9% last week.

Technical indicators and on-chain metrics suggest sustained bullish sentiment, with analysts projecting a potential 20% rally toward $30.

The cryptocurrency recently broke above a descending trendline formed by connecting mid-December highs, signaling a shift in market dynamics.

A weekly close above $20.99 resistance could propel AVAX toward $24.99, with a successful breach of this level potentially unlocking a 20% surge to the psychological $30 mark.

The Relative Strength Index (RSI) on the daily chart sits at 53, above the neutral 50 threshold, indicating bullish momentum.

The Moving Average Convergence Divergence (MACD) also flashed a bullish crossover last week, reinforcing upward pressure.

Coinglass data reveals a long-to-short ratio of 1.18—the highest in over a month—highlighting traders’ preference for bullish bets.

Funding rates further support this trend, flipping from -0.0065% on Friday to a positive 0.0051% on Monday.

This shift, where longs pay shorts, often precedes price rallies.

Analysts attribute the rally to improved on-chain activity and technical breakouts.

While AVAX’s immediate resistance at $24.99 remains a critical hurdle, sustained closes above this level could validate the path to $30.

The bullish outlook contrasts with broader market volatility, underscoring Avalanche’s resilience.

However, traders remain cautious, as failure to hold above $20.99 could trigger profit-taking and retest lower support levels.

For now, the combination of favorable technicals and trader positioning suggests AVAX may continue testing higher thresholds, though macroeconomic factors and broader crypto trends will likely influence its trajectory.

At the time of reporting, the Avalanche (AVAX) price was $21.68.