The price of Avalanche (AVAX) has been steadily rising in the run-up to the holiday period. As a result, the altcoin has increased more than fivefold in value in just over two months. Regardless, AVAX’s price still has more potential than most other cryptocurrencies, which have seen an increase of around 300% over the same period.
Investors and enthusiasts are keeping a close eye on whether AVAX can reach this milestone before the end of the current year, as the cryptocurrency makes steady progress towards the coveted $50 mark, a level it has not reached since May 2022.
AVAX Rises: From Resistance Break to $50 Anticipation
At the time of writing, AVAX was trading at $45.59, is down 2.1% over the past seven days but has rallied 6.7% over the past week, Coingecko data shows. With a market value of over $17 billion, the altcoin has become one of the largest in the industry thanks to its continued rise.
The value of the cryptocurrency has risen dramatically since October, when it was trading at a low of $8.50. With just two months to go, AVAX surged more than 400%, hitting a new yearly high of $46.50 and raising expectations that it would reach $50 in the remaining days of the year.
AVAX made a major breakout by breaking a descending resistance trendline that had held 750 days since its all-time high, propelling this incredible rise. This break from the established trendline represented a significant technical advance and was also a major factor in accelerating the pace of AVAX’s price appreciation.
AVAX market cap currently at $16.563 billion. Chart: TradingView.com
AVAX’s solid run to date is thanks to a number of favorable factors driving the broader cryptocurrency market. Macroeconomically, the recent decline in inflation and signs of likely rate cuts by the Federal Reserve and other central banks in 2024 provide a good environment for alternative assets such as AVAX.
AVAX’s potential amid ETF hopes and market optimism
Furthermore, there is hope that the US Securities and Exchange Commission (SEC) would approve a spot Bitcoin exchange-traded fund (ETF). If this happens, it could pave the way for the introduction of other cryptocurrency ETFs, such as those associated with Avalanche.
The crypto fear and greed index has risen to 75, indicating favorable sentiment and demonstrating the sector’s momentum. Historical data shows that tokens like AVAX tend to perform well and remain resilient during times of market optimism, which could indicate additional upside in the current market environment.
Even with the notable price increase of AVAX, changes in the price of Bitcoin still have an impact. If Bitcoin falls for any reason, Avalanche’s price will likely follow suit.
#Avalanche $Avax 1w
On course!
pic.twitter.com/pDM4hWzE7S
— FLASH (@THEFLASHTRADING) December 21, 2023
Meanwhile, crypto analysts at X believe the trend is likely to go up.
With a price target of $65, Flash has a bullish projection. His bullish view comes from a breakout from a long-term trend and a move across a horizontal resistance zone.
Furthermore, Bluntz Capital tweeted a bullish wave count suggesting that AVAX’s price will end the fifth and final wave close to $55.
Meanwhile, the price of AVAX remains above the weekly support level at $40 and is moving towards the resistance zone, which is between $51 and $55. Compared to the current price of $45.49, this move would represent a gain of about 20%.
With momentum growing and significant changes expected in the cryptocurrency scene, Avalanche (AVAX) could experience a significant percentage gain before a cooldown. The interplay of economic factors, regulations and market sentiment creates a compelling story for AVAX enthusiasts and investors alike.
Featured image from Shutterstock
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