15:00 ▪
4
min reading ▪ acc
The crypto market is in turmoil and Avalanche (AVAX) is proving to be one of the best performing assets in recent weeks. By doubling its value in record time, AVAX has captured the attention of investors, but also revived speculation about a potential extended rally. As the Avalanche platform continues to strengthen its ecosystem, could this price increase mark a permanent change or signal imminent overheating?
Rebound driven 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 move was triggered by a decisive break of the long-term downtrend with a successful retest of its key level at $38.57. According to observers, this level represents a “crucial area for the maintenance of bullish momentum” and its holding could allow new targets to be reached, especially the psychological level 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 indicate a renewed interest in Avalanche among DeFi users and beyond.
Short-term challenges and opportunities for the Avalanche
Despite the surrounding euphoria, some technical indicators call for caution. Bollinger Bands indicate that “AVAX is in overbought territory, which could cause a decline towards the 20-day moving average located at $32.70,” according to TradingView observations. This scenario provides more information about a possible slowdown in the uptrend, which supports speculation of a near-term consolidation.
However, growing community engagement and increasing platform revenue ($75,998 per day) reinforces Avalanche’s relevance in the market. If AVAX manages to hold the current level and break the critical resistance at $47.81, it could pave the way to all-time highs. The platform will also need to prove its resilience against competitors such as Ethereum, whose stablecoin market remains a significant lever.
The recent rise of Avalanche shows the importance of key tiers and growing ecosystem adoption. However, since cryptocurrencies are inherently volatile, it is imperative that investors watch for strategic supports and be alert for signs of overheating. The next few days will be decisive as to whether Avalanche turns this momentum into a truly permanent breakthrough in the crypto world, or whether the pullback temporarily moderates its price.
Maximize your Cointribune experience with our “Read and Earn” program! Earn points for every article you read and get access to exclusive rewards. Register now and start reaping the benefits.
A graduate of Sciences Po Toulouse and holder of the 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 made a commitment to raise awareness and inform the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations, and put into perspective the economic and social issues of this ongoing revolution.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.