Avalanche Falls Before Reaching $50
The Avalanche (AVAX) price experienced a significant increase in the past few months, rising by nearly 500% since September 2023. On December 24, it reached a new yearly high of $49.95. However, the price has since fallen and reached a low of $31.20 on January 8, causing a breakdown from an ascending wedge pattern. Fortunately, AVAX created a bullish candlestick on the same day and has been gradually increasing ever since.
What Do Analysts Say?
Cryptocurrency traders and analysts have a bullish outlook for AVAX’s future trend. Mars_DeFI believes that AVAX has strong fundamentals and technicals, pointing out key metrics such as daily active addresses, daily transactions, total value locked (TVL), and token burning. Umutak47 also notes a breakout from a descending resistance trend line, while MisterCh0c mentions that even notoriously bearish trader Capo predicted AVAX’s increase.
AVAX Price Prediction: Signs of a Local Top in Place?
An analysis of the daily time frame suggests that AVAX may have reached a local top. This is supported by the completion of a five-wave upward movement and bearish divergence in the daily RSI. If this count is accurate, AVAX may enter a corrective structure before potentially reaching $45 and then falling to $29. However, if AVAX surpasses $50, the correction may be complete, allowing for further upside potential towards the next resistance at $66.
Hot Take: Avalanche (AVAX) Price Sees Ups and Downs
The Avalanche (AVAX) price experienced a significant increase before falling from its yearly high of almost $50. However, analysts remain optimistic about AVAX’s future, citing strong fundamentals and technicals. The price may have reached a local top, but if it surpasses $50, it could continue to rise towards the next resistance at $66. As with any investment, it’s essential to conduct your own research and consult professionals before making financial decisions.
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