The recent price surge of Avalanche (AVAX) has captured significant attention within the cryptocurrency market. While this upward movement may appear sudden, data has suggested that such an increase has been anticipated for months. The key question remains: just how high can AVAX go in a potential bull rally?
Insights from Analysts
AVAX has seen a 19% increase in value over the past week, with a substantial rise noted in the last 24 hours. Currently trading at $32.31 and boasting a market cap of $12.7 billion, AVAX ranks 11th on Coinmarketcap. According to IntoTheBlock, over 55% of Avalanche investors are already in profit. Analyst World of Charts highlighted that AVAX had broken a crucial positive formation, suggesting significant momentum behind the price rally.
Since March, AVAX has been moving within a specific formation, coinciding with Bitcoin’s approach to its all-time high. The recent breakout of this pattern has been pivotal, hinting that the bullish trend might continue.
What Drives AVAX’s Price Increase?
The potential for the AVAX price to double has been speculated based on current analyses. On-chain data shows an increase in transaction volume alongside price growth, setting the stage for a bull rally. The rising social volume also indicates growing popularity for AVAX.
Sentiment indicators show increasing bullish sentiment towards AVAX. Technical analysis reveals a support level at $31.4, with potential for AVAX to reach $41 following successful consolidation. However, AVAX’s Money Flow Index (MFI) nearing overbought territory and a drop in the Chaikin Money Flow (CMF) indicator suggest possible selling pressure ahead.
Key Takeaways for Investors
Investor Insights:
- AVAX’s support level at $31.4 is critical for future price movements.
- Monitor MFI and CMF indicators for potential selling pressure.
- Sentiment analysis can offer insights into market mood shifts.
- Keep an eye on the $33 level as a significant liquidation point.
Hyblock Capital’s data indicates that AVAX’s movement above $33 is crucial. This level represents a significant liquidation point, which could drive corrections. If market sentiment turns bearish, AVAX might drop to $26. Despite these insights, it is vital to remember that market conditions can change rapidly.