Avalanche (AVAX) has remained in the $30-$39 price range for weeks. After rallying above $60 in March, AVAX dipped to the $35 region and has since struggled to break the $40 resistance.
However, recent bullish patterns indicate a possible surge to reclaim the $40 level. Moreover, a more significant recovery in the broader crypto market could propel AVAX to the $60.69 high it attained in March.
AVAX trades at $36.31, with a 5% price increase in the past 24 hours. It has gained nearly 8% in the last 30 days.
What is Driving Avalanche (AVAX) Price?
The broader crypto market sentiment often affects the price of all cryptocurrencies, and AVAX is no exception. There’s been a minor recovery in the general market sentiment, with Bitcoin pushing above $66,000 in the last 24 hours.
Several altcoins are playing in the green zone while riding on this bullish wave. Ethereum has flipped the $3,000 resistance, and it is only natural that AVAX, often tagged an “Ethereum killer,” follow suit.
Again, recent ecosystem developments, including the introduction of real-world assets (RWA) and tokenization, aid AVAX’s price ascent.
A recent announcement revealed that Avalanche will assist Ethereum in managing the tokenized United States treasuries. This feat will likely increase Avalanche’s popularity, boosting demand for its native coin, AVAX.
Also, Avalanche has launched a liquidity mining initiative tagged Memecoin Rush. This development aims to boost meme coin activity on Avalanche by providing $1 million as incentives for mining activities.
Also, Avalanche is introducing the new Wine Capital Fund, which encourages investors to partake in tokenization on the network. Avalanche’s low fees, transaction finality, and security make it an ideal hub for investors like Fine Wine.
The managing partner at Wine Capital Fund, Tommy Nordam, describes the Avalanche alliance as a revolutionary opportunity to invest in the Fine Wine market.
Interestingly, Fine Wine prices have gained around 149% over the last decade and now boast a market valuation of $400 billion. This is an impressive return on investment and will likely attract more investors.
AVAX Price Projections
Based on these developments and innovations, AVAX’s price is set to rally to $40 in the coming days. However, it must overcome key resistance at the $39.02 price level.
If AVAX rallies to $40, an increase of $54.82 is achievable. Crypto analyst Omar on X says AVAX is breaking out of a major trendline. Omar says a close above the trendline will trigger a short-term rally of 40% for AVAX.
What Next for AVAX?
AVAX is trading in an uptrend on the daily chart, forming a bullish engulfing pattern as the buyers return. AVAX has found support at $34.04 and is testing the $37.70 resistance level.
A break above this level will cause AVAX to rally to $4o in the coming days. Also, AVAX is trading close to the upper band of the Donchian Channel (DC), which confirms the bullish sentiment.
Additionally, the Relative Strength Index (RSI) indicator is rising out of the neutral zone with a value of 53.30. If the RSI rises to 60, the AVAX will have sufficient support to overcome the $37.70 resistance level. Therefore, AVAX will likely reclaim the $40 price level in the coming days.
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