AVAX is trading at $53.63 and ranks 10th among the cryptocurrencies with the highest capitalization in the crypto market. Your daily earnings are 0.1%.
Today, the price of AVAX, the Avalanche network token, reached $57.5, thus exceeding the monthly high of $49 marked in December.
However, on a weekly basis it shows gains of 34.74% and annual gains of 224.7%. These figures have filled the AVAX token and its network of smart contracts with optimism and lead us to ask ourselves:
What Is Happening around AVAX?
First, the Avalanche Foundation made great strides in its governance by expanding its board of directors. To do this, it welcomed members with reputation in the sector such as the X users @demirelo, @Ahnor_Block and @Vikram_Nagrani.
This change has offered greater optimism to the Avalanche network and has seemingly improved investor confidence around its token. It is also worth mentioning that on-chain data shows increasing interest in AVAX and from whales. As the narrative of the approval of an Ethereum spot ETF grows, smart contract networks gain interest. This could also be the case with BNB.
However, fundamental analysis is not enough to understand what is happening around AVAX and what will happen in the short term. We must refer to the price chart where we will find many more clues.
AVAX Chart Analysis: A Bullish Pattern
The price of AVAX increased approximately 470% since November 19, with strong pullbacks and corrections reaching current levels. So we can infer that this is a long-term trend.
Right now, the goal of the most optimistic bulls is for the price to reach $89, continuing its “roller coaster” path and being consistent with the following pattern.
Precisely with the rise that began last November and its decline in January, the price formed the bullish “rate and bound” pattern. The “risk” crossing $48.7 has been surpassed.
In this context, the first resistance to take into account is $57.5 or the daily highs. Secondly, there is the psychological resistance of 60 USD, and based on the precedent of the previous days, it is likely that the price will zigzag quite a bit before conquering it.
However, conquering this last support would allow to test $62.5 and later $66.8. If this happens, in the next analysis the focus could be on the 89 USD mentioned at the beginning.
Regarding the important supports to keep in mind are, first of all, $52.3 as daily resistance. But more relevant is the resistance of $48.7, as it represents the “risk” limit, so it is a level to challenge the validity of the bullish thesis.
Then there are the support levels of $46.9 and $41.1. The end of the bullish trend is well below $27.24, which represents the bottom of the trend.
What Needs to Happen for AVAX to Continue Its Bullish Path?
As Bitcoin stabilizes around $70,000, we see a fairly bullish rally in altcoins. However, with greed levels high, we must guard against Bitcoin pullbacks. However, the achievement of new record levels of BTC this week will be quite bullish for AVAX and would help it reach new levels.
Meanwhile, whale activity continues to favor the token and likewise the increase in the number of operations. With the incredible market capitalization in the price of AVAX standing at 20 billion, it reaffirms itself as a favorite project for large investors. Something similar happens with activity when it comes to transactions.
Therefore, it can be concluded that network activity is not influencing the current rebound.
By Audy Castaneda
