The price of Avalanche (AVAX) increased rapidly in December and yesterday reached a new annual high of $38. At the moment, there is no clear horizontal resistance above the current levels.

Avalanche was able to overcome the 750-day resistance and continues its growth. The weekly timeframe shows that the AVAX price has been increasing rapidly since October, and yesterday it reached a new annual high of $38.

In addition, Avalanche has successfully overcome the 750-day descending resistance line that has been present on the chart since reaching the historical maximum.

The RSI index is above the neutral 50 mark and continues to grow despite being overbought. There are no signs of bearish divergence yet.

Cryptocurrency traders and analysts on the X platform expressed their impression of the ongoing Avalanche rally. JJJCycles highlighted the important resistance at $53 after successfully breaking through the current horizontal level.

Crypto Ryan noted that the price has increased by more than 150% since its previous forecast and pointed to a long-term uptrend support line around $55.

Shuarix experts are also optimistic and believe that Avalanche may break through the resistance line if sales volumes return. Over the past 42 days, the price has increased by 180%, and now there is a slight correction in the bullish momentum, perhaps we will see another increase.

According to the results of Elliott wave analysis on the daily chart, the most likely scenario assumes that the AVAX price is in the fifth and final phase of the upward movement that began in October. The daily RSI supports this optimistic forecast, and the index has broken through the bearish divergence trend line, indicating a bullish trend.

If the upward momentum continues, the estimated peak of this movement may be at $44. In such a scenario, the fifth wave will be 0.618 times longer than the combined length of the first and third waves, which implies a 20% increase in AVAX.

If the fifth wave continues to grow, then the potential target will be at $58, which coincides with the length of the first and third waves combined and is 60% higher than the current price.

However, if Avalanche fails to overcome the $44 resistance area, this may indicate that the local peak has already been reached, and the price may decline by 40% to the horizontal support level of $22.