Avalanche (AVAX): Is this the final bullish price breakout?

INFBusiness
12.09.2025
News

The price of the Layer 1 ecosystem Avalanche (AVAX) has gained seven percent in the last 24 trading hours, making it one of the strongest price performers among the 100 largest cryptocurrencies.
Yesterday's announcement by Avalanche DAO that it intends to build a multi-billion dollar treasury is likely to have provided significant tailwind for the AVAX share price.
Week-on-week, Avalanche is also showing its bullish side with a 16 percent price increase and jumping to a fresh multi-month high of $29.99.
Although the AVAX price is still trading around 35 percent below its yearly high despite the recent price breakout, the breakout above the strong resistance area at $26.42 offers room for further price increases.
In the short term, Avalanche needs to establish itself above this key level and subsequently break out of the $30 area. This would then open up room to stabilize into the next target zone between $32.86 and $34.43.
If the AVAX price can subsequently overcome this area, a move toward the next relevant target area between $40.22 and $41.41 is conceivable. This zone served as a technical pivot point several times at the beginning of the year.
If the bulls manage to recapture this level despite increased profit-taking, the area around the yearly high of $44.49 would come into investor focus.
This will determine whether Avalanche can develop enough price momentum to reach the maximum price target of $50.02 for the coming trading months.
However, if the AVAX price fails to sustainably break above the $29.50 mark in the coming days, a retest of yesterday's breakout level at $26.42 should be expected. Buyers must stabilize the price there to confirm the bullish market structure shift.
A fall below this area would be considered a false breakout and could push Avalanche back towards the monthly low of $23.12.
If the price fails to find support here and continues to trend southward in the wake of renewed weakness in the crypto market, a retest of the low of August 4 cannot be ruled out. This support level currently serves as the maximum correction target on the downside.

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