Avalanche (AVAX) surges 9% as geopolitical tensions ease, altcoins rally

Avalanche (AVAX) has recently shown significant price movements, with a 9% increase over the last 24 hours. This surge comes as the broader cryptocurrency market experiences a sharp bounce, driven by easing geopolitical tensions between Israel and Iran. The renewed optimism in the market has led to a rally in altcoins, with AVAX standing out as one of the top performers.

Beyond the recent price spike, a closer examination of AVAX's chart reveals a compelling pattern. The token appears to be following a fractal pattern similar to one observed in mid-to-late 2024, which could indicate another explosive move. In 2024, AVAX formed a classic falling wedge pattern, known for signaling bullish reversals. After breaking out of this wedge, the token entered a tight descending channel, consolidating just below key resistance before skyrocketing by more than 130%, topping out near the $50 region.

In mid-2025, AVAX is once again following a similar trajectory. It has recently broken out from a second falling wedge, followed by another descending consolidation channel. This setup is strikingly similar to the one observed in the previous cycle. Currently, AVAX is approaching the upper boundary of this channel, with early signs suggesting a potential breakout is underway.

If AVAX continues to follow this historical fractal, a breakout from the current channel could trigger a powerful upward rally, potentially targeting the $42 to $46 zone. This level aligns with the upper dotted trendline from its previous cycle peak, creating a strong technical confluence. Additionally, the 100-day moving average is beginning to flatten out, hinting at a shift in trend. A confirmed breakout and successful retest could bring back the bulls and unlock significant upside potential for the rest of the quarter.

However, while the setup is compelling, confirmation is still needed. A clean break above $26 followed by sustained momentum would provide much stronger conviction for a trend reversal. It is important to note that this analysis is for informational purposes only and should not be considered financial advice. Always conduct thorough research before investing in cryptocurrencies.