Technical Analysis: Bullish Continuation Signal
Avalanche (AVAX) has demonstrated a significant technical breakout, signaling potential bullish continuation. The cryptocurrency has successfully exited a right-angled ascending broadening wedge pattern, a formation often interpreted as a precursor to upward price movement.
This breakout suggests that the current consolidation phase around the $14 price level is setting the stage for a potential push towards an upside target of $9. This optimistic outlook is further supported by recent upgrades to the Avalanche network and a notable increase in developer activity, both of which are considered factors that could bolster Avalanche's trajectory towards new highs.
Pattern Breakdown and Price Targets
Analyst Ali Charts highlighted on December 11, 2025, that AVAX is currently consolidating after breaking out of a right-angled ascending broadening wedge. This observation builds upon a previous December 2 post, where the analyst identified the initial breakout as a catalyst that could lead to a target price of $9. From the current price of approximately $14, this target implies a potential upside of 64%.
The technical pattern, a broadening wedge with diverging trendlines forming a megaphone shape, is known for indicating increasing volatility and momentum. The specific "right-angled" variant, characterized by a horizontal resistance line, gains additional significance when breached upwards. AVAX's decisive move above this upper boundary in early December has effectively nullified bearish market structures, shifting the focus to measured move projections.
The projected $9 extension, calculated from the breakout point near $10–$11, aligns with Fibonacci extensions and previously established resistance zones around $18–$20. Ali's conservative target of $9 provides a specific, achievable goal amidst potential market fluctuations.
Fundamental Strength and Market Context
As of the latest data, Avalanche is trading around $14.21, showing a slight increase of 0.5% in the last 24 hours, though it has experienced an 8% weekly decline amid broader Bitcoin consolidation. Trading volume remains steady at $439 million, indicating consistent trader interest despite pressures from regulatory news affecting the altcoin market.
The fundamental underpinnings of Avalanche appear strong. The Avalanche 9000 mainnet upgrade, implemented earlier this year, has significantly reduced transaction fees and boosted transaction processing speeds to 4,500+ per second. This enhancement has attracted a growing number of decentralized finance (DeFi) protocols and gaming decentralized applications (dApps) to the platform. Specifically, subnets powering tokenized real-world assets (RWAs) have seen their total value locked (TVL) climb to $1.2 billion, according to DefiLlama.
On-chain data also reveals sustained accumulation by large holders, often referred to as whales. Approximately 2.5 million AVAX tokens were acquired in the past month, according to on-chain tracking services. This accumulation trend further supports the potential for a price rebound.
Trading Outlook and Future Prospects
From a trading perspective, the current setup presents a compelling opportunity. The Relative Strength Index (RSI), currently at 40.83 (indicating a neutral stance according to CoinCodex), suggests ample room for upward price movement without immediate risk of being overbought. The 50-day moving average, situated at $15, represents a near-term overhead resistance level.
For the bullish case to remain intact, a sustained hold above the $13 level is crucial, which would invalidate downside risks towards the $12 support zone. A failure to maintain this level could lead to a retest of the wedge's base. Ali's analysis underscores the intersection of technical patterns and real-world adoption, particularly in a market environment where Avalanche's interoperability with Ethereum via bridges positions it favorably for potential inflows related to Bitcoin ETFs. This mirrors the significant 300% surge AVAX experienced in 2024.
As the cryptocurrency market anticipates potential year-end rallies, Avalanche's combination of technological innovation and clear chart formations positions it as a notable asset. For optimistic investors, the $9 target is not merely speculative but represents a logical next step in the network's scaling evolution. While prudent risk management is always advised, the current technical setup suggests that the broadening wedge may indeed be widening towards profitable outcomes for AVAX.