Avalanche’s native token AVAX has captured the crypto community’s attention, gaining 35% in the past week. This surge aligns with broader market trends and significant ecosystem developments, making AVAX one of the standout performers.
AVAX Breaks Key Resistance Levels
AVAX recently surged past the crucial $30 resistance level, marking a strong shift in market sentiment. The price is currently around $31.49, slightly down by 1% at the time of writing, but still showing a positive outlook. Market analysts believe the rally isn’t over yet, predicting more gains ahead.
The asset has also surpassed the 200-day Exponential Moving Average (EMA), signaling a potential transition from a bearish to a bullish trend. If AVAX closes above the daily $32 candle, analysts expect a further 35% rally, targeting $42.5 as the next major resistance point.
Market Indicators Show Strong Bullish Sentiment
On-chain data supports the bullish outlook for AVAX. According to Coinglass, the Long/Short ratio for Avalanche currently stands at 1.40, indicating strong confidence among traders. Additionally, the open interest for AVAX has risen by 13.6% in the past 24 hours, showing increased trader participation following the recent breakout.
At present, 58.3% of top AVAX/USDT traders hold long positions, while 41.7% are short. This suggests that bulls and whales are dominating, potentially setting the stage for a significant upside rally in the coming days.
Could AVAX Overtake Solana?
Some market analysts believe that Avalanche has the potential to outperform Solana (SOL) in the long run. If AVAX crosses the $150 price level, it could position itself as a stronger competitor, according to a report by CNF.
Jason Yanowitz Predicts a Major Rally
Jason Yanowitz, co-founder of Blockworks, sees parallels with AVAX’s 70X rally from 2021. He suggests that the current market conditions resemble that phase, particularly following Donald Trump’s recent victory in the U.S. presidential election. Yanowitz noted that private market allocators are realizing their underexposure to crypto, prompting increased interest in AVAX.
He also highlighted that many firms are now approaching VCs and hedge funds for crypto allocations. Yanowitz anticipates the announcement of significant new funds entering the market soon, which could provide additional bullish momentum for Avalanche.
Avalanche Foundation’s Buyback Boosts Price
A recent buyback by the Avalanche Foundation is also driving positive sentiment. The foundation repurchased 1.97 million AVAX tokens, creating upward price pressure. This move is expected to support the ongoing rally, providing a strong foundation for future gains.
Final Thoughts
Avalanche (AVAX) appears to be entering a strong bullish phase. With key resistance levels broken and strong market participation, the token could see further upside. However, investors should be aware of potential market volatility, especially with key macroeconomic data releases, such as the U.S. CPI and jobless claims, expected this week.
