Alongside Bitcoin, the altcoin market is also witnessing a significant catch-up with a robust 2.6% rally in the broader crypto markets. Avalanche, in particular, has emerged as today’s standout performer! The Avalanche price has surged by 10% in the past 24 hours and is presently trading at $39.28 with a market capitalization of $14.43 billion. Interestingly, the AVAX trading volume has also surged by 82% in the previous 24 hours.
Avalanche (AVAX) Price Analysis
The daily AVAX/USD chart indicates a potential breakout scenario. At the moment, the bulls are already challenging the $39 resistance level, and a successful breakout could potentially propel AVAX to $43.85. On the other hand, a rejection could result in a pullback towards the next support zone at $33.85.
Currently, the Relative Strength Index (RSI) stands at 54.42, signaling a resurgence in buying momentum. Further supporting this outlook is the Awesome Oscillator (AO), which has been indicating increasing upward momentum for AVAX since ascending from negative levels. Additionally, the Directional Movement Index (DMI) reinforces the bullish sentiment by demonstrating greater buyer aggression compared to sellers in the market.
AVAX Price Targets $50
The Average Directional Index (ADX) for AVAX currently sits at a relatively modest 13.49. However, a climb above 25, combined with the positive Directional Movement Indicator (+DMI) leading to the negative Directional Movement Indicator (-DMI), could indicate AVAX’s potential trajectory toward $40. Despite this positive outlook, potential hurdles lie ahead, as illustrated by the Liquidation Heat Map, which predicts significant liquidations around the $37 mark. Investors employing high leverage and maintaining low-margin balances are particularly vulnerable to increased risk, especially if Avalanche (AVAX) surpasses the $38 threshold.
Market volatility remains a crucial factor to monitor, with fluctuations in volume signaling forthcoming price movements. A decline in volume could trigger a pullback, while an increase could propel AVAX toward the $50 level. Encouragingly, on-chain data reveals a favorable Funding Rate for Avalanche (AVAX), indicating that long positions are paying a funding fee to short positions. This bullish indicator contributes to the potential for sustained price appreciation in the AVAX market.
Avalanche is a platform designed to launch DeFi applications and deploy enterprise blockchain networks in a scalable, integrated ecosystem. It supports all the same development tools that Ethereum supports. Transactions on the network are confirmed within one second. According to the developers, it is the first smart contract platform that confirms transactions in less than a second and also supports the full suite of Ethereum tools.