Avalanche (AVAX) has been gaining attention after a period of price drops. As the correction nears its end, investors are eyeing a potential rally toward the $35 mark. In this article, we’ll explore AVAX’s recent price movement, the factors driving its growth, and what might come next.
Recent Avalanche (AVAX) Price Movement
AVAX is currently priced at $25.90, with a 24-hour trading volume of $611.20 million and a market cap of $10.52 billion. Over the past 24 hours, AVAX has risen by 3.7%, showing signs of recovery. However, AVAX remains 82% below its all-time high of $146.18, reached in November 2021.
Despite this, market sentiment around AVAX remains neutral, with the Fear & Greed Index reflecting a score of 49. With 406.05 million AVAX tokens in circulation, the yearly supply inflation rate stands at 14.63%, adding 51.81 million new tokens in the last year.
Why is Avalanche (AVAX) Price Up?
The recent uptick in AVAX’s price can be attributed to support at the 50-day Simple Moving Average (SMA) of $24.66, sparking bullish momentum. If AVAX breaks through the 20-day Exponential Moving Average (EMA) at $26.42, it could push the price higher, possibly to the $35 mark.
Additionally, large investors or “whales” have shown growing interest in AVAX, with whale transactions surging 98% in a 24-hour period, totaling $226.19 million. This suggests increasing confidence in AVAX’s potential, though retail investors remain more cautious, waiting for stronger signals before making moves.
Can AVAX Reach $35?
Technically, if AVAX holds its support and breaks above the key resistance levels, the price could aim for $35. Whale activity, along with strong market liquidity and growing trading volumes, supports a bullish outlook. However, failure to maintain support above the 50-day SMA could lead to a bearish shift, potentially dropping the price to $19.50.
On the positive side, if AVAX surpasses $31, a wave of liquidations worth $23 million could further boost the price. For AVAX to achieve and maintain higher levels, sustained momentum and support from both whale and retail investors are crucial.
What’s Next for Avalanche (AVAX)?
AVAX has demonstrated strong growth over the past year, with a 151% increase, outperforming most top crypto assets. As it trades above its 200-day SMA, the potential for further gains looks promising. However, AVAX remains overbought, signaling a possible short-term pullback before any significant rally toward $35 or beyond.
Investors should keep an eye on key resistance levels, whale activity, and market sentiment. If these factors align, AVAX could reach $50 or higher in the medium to long term.
