Avalanche (AVAX) Aims for $18 as Crucial Resistance Approaches: Analyst Insights

AVAX, the native token of the Avalanche blockchain protocol, is on the verge of a potential price breakout after a week of notable mixed price movements. In line with the wider crypto market's upward trend, AVAX initially climbed to $14.85 before retracting to below $13.50. Analyst Ali Martinez indicates that AVAX stands at a pivotal price point, with the forthcoming price movement likely to shape its short-term trend.

Key Takeaways

AVAX is currently experiencing critical price movements, hovering around $13.61.
The next significant resistance level is at $14.83, where it has faced repeated rejections.
An inverse head and shoulders pattern suggests a bullish breakout may be imminent if AVAX can surpass the resistance.
Predictions indicate potential price targets of $17.59 and $18.41 based on sustained buying pressure.
Despite minor recent losses, AVAX shows a notable monthly gain, indicating a possible trend reversal after a tough period in Q4 2025.

AVAX

The Importance of Overcoming the $14.83 Resistance Level

In a recent post on X, dated January 16, Martinez provided an in-depth analysis of the AVAX 12-hour trading chart, pinpointing a crucial price zone and a significant chart formation. His technical review suggests that the recent rejection near $14.85 can be attributed to strong resistance in this area. AVAX has struggled to surpass the $14.83 resistance on three occasions in the past month, highlighting a robust inclination among investors to sell as the price approaches this level. This resistance could be influenced by a general perception of this price point as an attractive zone for profit-taking or anticipation of a price decline based on historical patterns.

AVAX
Source: @alicharts on X

Martinez also notes that the price movements of AVAX have formed an inverse head and shoulders pattern, suggesting a likely future upside breakout. This formation, known as an inverse head and shoulders, is a bullish pattern that indicates a potential trend reversal. Specifically, it consists of three troughs: the left shoulder, where the price falls and then rebounds; the head, which marks a deeper decline to approximately $11.26 followed by a recovery; and the right shoulder, where a higher low ($13.75) fails to reach the depth of the head.

These rebound peaks are linked by a resistance line ($14.83) often referred to as the neckline. A bullish breakout will imply increased buying pressure. Martinez emphasizes that for AVAX to facilitate a bullish breakout towards $17.59, it must decisively overcome this barrier. With sustained buying momentum, there is potential for a further rise to $18.41, representing a possible 35% increase from current market prices.

Current Market Snapshot of AVAX

As of the time of this writing, AVAX is trading at $13.61, reflecting slight losses of 1.19% and 1.34% over the past day and week, respectively. However, the monthly chart reveals a market gain of 14.67%, hinting at a possible trend reversal following a challenging Q4 2025.

AVAX
AVAX trading at $13.60 on the daily chart | Source: AVAXUSDT chart on Tradingview.com