- Avalanche price has reversed its very harsh growth trends of the past month.
- Series of network fundamentals are working together to enhance the valuation of AVAX.
Avalanche (AVAX), a decentralized blockchain platform has recently caught the attention of the crypto community as its price rebounds above $30, bringing relief to investors after a sharp decline from its December 2023 high of $50.
Avalanche’s Recent Price Movement
As of the latest data, AVAX is trading at $30.43, down by 3.03% and boasting a market cap of $11,167,893,360. The 24-hour trading volume is also down by 28.97% to $514,771,397.
In recent weeks, Avalanche faced a notable downturn in its price, mirroring the broader crypto market’s volatility. AVAX, which had reached impressive highs in the previous months, saw its price plummet below $27.21 before bouncing back.
This bounce validated a long-term horizontal area, emphasizing its importance in providing support. The creation of a long lower wick on the AVAX chart suggests potential buying interest in the market. However, the weekly Relative Strength Index (RSI) remains undetermined, hovering above 50, indicating an uncertain trend that might be tilted by either the bears or the bulls.
Traders often use RSI as a momentum indicator to gauge overbought or oversold conditions. While the RSI is falling, its position above 50 suggests that the bulls still hold an advantage. Crypto traders and analysts have varying views on AVAX’s future trend, with some anticipating a bullish scenario.
Is the Bottom in Sight for AVAX?
On the daily time frame, AVAX has been trading within a descending parallel channel since its December 2023 high. The recent bounce at the channel’s midline and the 0.5 Fib retracement support level signals potential bullish momentum. The Elliott Wave theory is also invoked, suggesting that AVAX is in the C wave of an A-B-C corrective structure.
However, caution is advised as the daily RSI is below 50, indicating a lack of confirmation for the bottom. If AVAX breaks out from the channel, there is a potential 35% increase to the closest resistance at $42. Conversely, falling below the recent low of $27.22 could result in a 26% correction to the channel’s support trend line at $22.65.
Traders and analysts on social media platforms X have expressed a bullish outlook for AVAX. MTI Trading suggests that AVAX is nearing its bottom, presenting a good entry for the upcoming bull run. The sentiment is echoed by Wolf Of Altcoins, who believes AVAX could potentially increase tenfold during the current bull run. TOP GAINER TODAY is even more optimistic, predicting a price target of $50 to a maximum of $100 for AVAX.
The bullish scenario for AVAX relies on the growth of Daily Active Addresses and Transactions on the network.
The introduction of ASC-20, Avalanche’s version of the BRC-20 standard with Bitcoin Ordinals on BTC, has garnered attention. Over 100 million inscriptions since its launch in June highlight the untapped market for NFTs on other chains. The adoption of new subnet technology could further enhance on-chain activity, favoring AVAX in the long term.
Nevertheless, a bearish scenario cannot be ignored, as indicated by a drop in social sentiment and a 34.5% value decline over the past month.
