Avalanche price continued its strong rally as the Crypto Fear and Greed Index remained in extreme greed territory. The AVAX token jumped to a high of $45, its highest level since April 12 and 158% above its lowest level in August.
Price Avalanche has strong technical characteristics
The daily chart shows that the AVAX token price is supported by strong technical fundamentals, which could help it rise significantly in the near future. The AVAX token formed a golden cross pattern as the 50-day and 200-day moving averages crossed over each other.
Avalanche remains about 43% above its 50-day moving average. It also jumped above the Ichimoku cloud indicator and formed an inverted head and shoulders pattern, a popular reversal sign in the market.
AVAX price also rose above critical resistance at $37.62, its swing high on November 12 this year. It jumped above the Ichimoku cloud indicator.
Meanwhile, the popular market value realized value (MVRV) indicator has jumped to 3.2 and is pointing higher. Other oscillators such as the Relative Strength Index (RSI) and MACD indicators also rose, which is a sign that the coin is gaining momentum.
While it is too early to make predictions, there are signs that the price of the Avalanche cryptocurrency is forming a cup-and-handle pattern, with the top sign at $65. This model is characterized by a rounded bottom.
To predict the potential target of this pattern, traders measure the distance between the bottom and top side of the cup and extrapolate it from the top side. In this case, this distance is about 268%.
If we measure 268% above the upper bound, we can estimate that the coin will rise to $240, which is approximately 458% above the current level. The bullish view will be invalidated if Avalanche’s price falls below $30.
Meanwhile, cryptanalysts are optimistic about the price of AVAX. For example, in Post X, Satoshi Flipper, who has over 270K followers, identified his next target at $120, citing a falling wedge pattern on the weekly chart. Another analyst noted the fact that AVAX rose above the Ichimoku cloud indicator on the weekly chart. He expects the coin to rise to $200.
$AVAX/usdt WEEKLY One of my subscribers asked me to create a schedule $AVAXWeekly chart looks incredibly bullish, falling wedge breaks out with $150 target 🚀🚀
AVAX price has a solid foundation
One of the main bullish arguments for Avalanche is that it is often seen as an alternative to Solana, a coin that has risen strongly this year. Solana’s price has skyrocketed to over $250, and analysts expect it to make even bigger gains as it moves closer to Ethereum. So, with Avalanche trading at $43, some investors believe it’s a better bet.
Additionally, there are signs that the Avalanche ecosystem is doing well. For example, DEX volume has jumped to nearly $2 billion in the past seven days, making it the sixth-largest network in the industry. In total, its DEX networks processed $174 billion worth of transactions.
Avalanche simply needs a vibrant meme coin ecosystem to catch up with Solana, as most of the volume on the latter’s platform comes from meme coins.
Meanwhile, interest in Avalanche futures has jumped to an all-time high of over $534 million, a trend that could continue to accelerate in the near future. Open interest is an important indicator that reflects the trading volume in the futures market. It is often seen as a good indicator of demand for an asset.
Most importantly, there are chances that Avalanche will become a prime candidate to become a potential spot ETF under the Donald Trump administration. Most analysts expect the administration to be friendlier to mainstream crypto projects.
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