Sun. Nov. 24, 2024 ▪
3
min read ▪ by
The crypto market is in turmoil with Avalanche (AVAX) emerging as one of the best performing assets in recent weeks. Thanks to its value which doubled in record time, AVAX attracted the attention of investors, while reigniting speculation about a potential prolonged rally. As the Avalanche platform continues to strengthen its ecosystem, could this price surge mark a lasting change, or signal imminent overheating?
A rebound fueled by technical and fundamental signals
Avalanche (AVAX) saw its price explode from $21.56 to a recent high of $47.81, a 100% increase. This upward movement was triggered by a decisive breakout of a long-term downtrend, with a successful retest of its key level at $38.57. According to observers, this level represents a “critical zone for maintaining upward momentum” and its maintenance could allow new targets, in particular the psychological barrier of $60.
Along with these technical indicators, the volume of activity on Avalanche has increased significantly. On-chain data shows a 51.83% increase in new addresses in one week and a 9.09% increase in total value locked (TVL) on the platform, now at $1.443 billion. These signals suggest renewed interest in Avalanche among DeFi users and beyond.
Near-term challenges and opportunities for Avalanche
Despite the ambient euphoria, certain technical indicators encourage caution. Bollinger Bands indicate that “the AVAX token is in overbought territory, which could trigger a pullback towards the 20-day moving average at $32.70,” according to TradingView observations. This scenario provides additional insight into a potential slowdown in the uptrend, fueling speculation of a near-term consolidation.
However, growing community engagement and increasing platform revenue ($75,998 per day) strengthen Avalanche’s relevance in the market. If AVAX manages to maintain its current levels and overcome the critical resistance at $47.81, it could pave the way to all-time highs. The platform will also have to prove its resilience against competitors like Ethereum, of which the stablecoin market remains an important lever.
In reflection, Avalanche’s recent rise highlights the importance of key tiers and the growing adoption of the ecosystem. However, with the inherent volatility of cryptos, it is crucial for investors to monitor strategic supports and remain vigilant for signals of overheating. The next few days will be decisive in determining whether Avalanche can turn this momentum into a truly lasting breakthrough in the crypto universe or whether a pullback will temporarily adjust its price.
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A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.
