- AVAX surges 100% post breakout, with analysts eyeing $60.
- On-chain growth accelerated as AVAX hit $43.03, with support at $38.57 critical for December gains.
As a seasoned analyst with years of experience navigating the volatile crypto markets, I find myself thoroughly intrigued by Avalanche’s [AVAX] recent surge and its potential for further growth. The double-digit percentage increase in such a short span is reminiscent of the early days of Bitcoin, a time when a single coin could change your life overnight – or at least make you believe it could!
The cryptocurrency AVAX (Avalanche) is experiencing a surge, nearly doubling in value following a significant breakthrough that saw it move beyond the prolonged downward trend in its larger market trajectory.
While the market is on the lookout for signs indicating either sustained expansion or a possible reversal, traders are meticulously analyzing crucial thresholds to predict the digital currency’s forthcoming direction.
AVAX doubles in fortunes
The cost of Avalanche dramatically increased, moving from around $21.56 to a peak of $47.81, following its successful break above a long-term resistance line and subsequently confirming that line as a new support level.
After the initial surge, the cryptocurrency saw a significant push from buyers, causing its value to nearly double over just a few weeks.
In simpler terms, the price at the end of November finished higher than the significant support level of $38.57, indicating that buyers are in charge around this price mark.
According to analyst Rekt Capital, the $38.57 level is crucial for maintaining a bullish trend. If the price can stay above this point until December, it might lead to additional price increases.
Support at $38.57 and resistance at $47.81
Investors are keeping an eye on the $38.57 price point, seen as a base for further price increases to continue.
The prices at $43.18 and $47.81 served as obstacles for potential buyers, as these figures also corresponded with past areas where the price was previously rejected.
If Avalanche (AVAX) manages to hold its value above $42.81 in the near future and successfully surpasses $47.81, some analysts predict that we might see a potential increase towards $60 in the long run.
At this stage, there’s a notable psychological importance as it mirrors the ongoing optimistic market movement observed over the past few weeks.
On-chain metrics and DeFi activity
There’s been a significant surge in user engagement on the Avalanche network, as evidenced by on-chain data. In the last week alone, we’ve seen a 51.83% rise in new accounts and a 24.69% increase in active accounts.
Additionally, zero-balance addresses saw a 21.57% increase, indicating rising adoption.
Over the last day, the Total Value Locked (TVL) of Avalanche has increased by 9.09%, reaching a current figure of approximately $1.443 billion, as reported by DeFiLlama.
The total value held in stablecoins stood at approximately $1.955 billion, while the platform generated a daily income of around $75,998 through fees and earnings.
This suggested increased ecosystem engagement alongside the price rally.
A pullback remains possible
The technical tool known as Bollinger Bands suggested that the value of AVAX was trading above the top boundary, pointing towards increased market volatility and signs of it being overbought.
A pullback toward the 20-day SMA at $32.70 could occur if bullish momentum slows.
Read Avalanche’s [AVAX] Price Prediction 2024–2025
In simpler terms, the Moving Average Convergence Divergence (MACD) showed a bullish signal, as the MACD line moved away from the signal line and the bars below it became larger and green.
On the other hand, traders tend to be wary about overextending positions because spikes in the histogram frequently signal upcoming short-term periods of stability or adjustments.
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2024-11-24 03:04