Avalanche (AVAX) has been trading within the $30-$39 range for weeks, experiencing a dip to $35 after reaching above $60 in March. However, recent bullish patterns suggest a potential surge to reclaim the $40 level, with the broader crypto market showing signs of recovery. AVAX currently trades at $36.31, with a 5% increase in the past 24 hours and an 8% gain in the last 30 days.
Factors Driving Avalanche (AVAX) Price:
The overall sentiment in the crypto market influences the value of cryptocurrencies, including AVAX. With Bitcoin surpassing $66,000 in the last 24 hours, several altcoins are benefiting from the positive market trend. Ethereum breaking the $3,000 resistance level sets a favorable precedent for AVAX, often referred to as an “Ethereum killer.” Additionally, ecosystem developments like the integration of real-world assets (RWA) and tokenization contribute to AVAX’s price appreciation.
Avalanche’s recent announcement regarding its collaboration with Ethereum in managing tokenized United States treasuries enhances its reputation and increases demand for its native coin, AVAX. Initiatives like the Memecoin Crawl liquidity mining program and the Wine Capital Fund further support tokenization on the network, attracting investors interested in sectors like Fine Wine, which has seen a significant increase in value over the past decade.
AVAX Price Projections:
Based on these developments, AVAX’s price is poised to rally to $40 in the near future, provided it overcomes key resistance at the $39.02 level. A potential price target of $54.82 is achievable if AVAX breaks out of a significant trendline, triggering a short-term rally of 40% according to crypto analyst Omar on X.
What’s Next for AVAX?
AVAX is currently in an uptrend, forming a bullish engulfing pattern on the daily chart as traders return. Testing the $37.70 resistance level, a breakout could propel AVAX to $40 in the coming days. Additionally, trading near the upper band of the Donchian Channel (DC) and with the Relative Strength Index (RSI) indicator rising above the neutral zone, AVAX shows bullish sentiment and potential to reclaim the $40 price level soon.
Disclaimer: The opinions expressed in this article do not constitute financial advice. Readers are advised to conduct their own research and assess their risk tolerance before making any financial decisions. Cryptocurrency remains a highly volatile and high-risk asset class.