Avalanche (AVAX) Price Prediction: AVAX Price Eyeing $35?

Avalanche (AVAX) has been one of the most talked-about cryptocurrencies in recent months. After a period of price drops, it seems AVAX is finally nearing the end of its downward correction. Investors and traders are now closely watching to see if it will make a strong comeback and aim for the $35 mark. But what factors are driving AVAX’s price, and what can we expect in the near future? In this Avalanche price prediction article, we’ll explore the current state of AVAX, its potential growth, and what could happen next in its price journey.

How has the Avalanche (AVAX) Price Moved Recently?

AVAX/USD Daily chart- TradingView

Avalanche (AVAX) is currently priced at $25.90, with a 24-hour trading volume of $611.20 million. Its market capitalization stands at $10.52 billion, giving it a market dominance of 0.49%. Over the past 24 hours, AVAX has seen a price increase of 3.70%.

The highest value AVAX ever reached was $146.18 on November 21, 2021. Conversely, its lowest value was $2.79 on December 23, 2020. Since hitting that all-time high (ATH), the lowest AVAX price recorded was $8.69 (cycle low), and the highest point since that low was $65.26 (cycle high). Currently, the sentiment for AVAX’s price outlook is neutral, with the Fear & Greed Index also reflecting a neutral stance at 49.

At present, there are 406.05 million AVAX tokens in circulation, out of a maximum supply of 715.75 million. The yearly supply inflation rate is 14.63%, resulting in the creation of 51.81 million AVAX over the last year.

Why is Avalanche (AVAX) Price UP?

AVAX/USD 1 Min chart- TradingView

Avalanche (AVAX) is experiencing a positive price movement, driven largely by key support levels and heightened activity from large investors, known as “whales.” Recently, AVAX has reached its 50-day Simple Moving Average (SMA) of $24.66, which acts as a near-term support, indicating potential bullish momentum.

Should the price break above the 20-day Exponential Moving Average (EMA) at $26.42, it would serve as a catalyst for further upward movement, possibly pushing AVAX into the $32 to $33 range. If bulls manage to sustain this momentum, a surge toward the $35 level could be on the horizon, as traders capitalize on this rally.

The increased interest from large investors is evident, as whale transactions have surged by approximately 98%, amounting to $226.19 million in AVAX within a 24-hour period. This heightened activity among large holders suggests confidence in the token’s potential, even as retail investors maintain a cautious stance.

The discrepancy between whale activity and the number of active addresses indicates that while large investors are positioning for a price shift, smaller participants are waiting for more definitive market signals before joining the trend. This cautious approach from retail traders could be a reflection of current market volatility, where they may prefer to see stronger confirmation before committing to AVAX.

On the technical side, a failure to maintain support above the 50-day SMA could shift momentum back to the bears, potentially driving the price down to around $19.50, where strong buying interest is anticipated.

However, data from Coinglass highlights a bullish perspective, with nearly $23 million worth of AVAX exposed to liquidation risks if the price reaches $31. This indicates a significant bet on short-term upward price movement, reinforcing positive sentiment among traders who expect AVAX to perform well in the near future.

Overall, AVAX is in a pivotal position. The convergence of whale activity, market sentiment, and technical indicators suggests a potential for a rally if the price breaks key resistance levels.

However, the market’s response in the coming days, particularly from retail investors and the ability to hold key support, will be crucial in determining whether AVAX can sustain its upward trend or face downward pressure.

How high can Avalanche (AVAX) Price go?

Avalanche (AVAX) has demonstrated strong performance over the past year, with a price increase of 151%, outperforming 71% of the top 100 crypto assets, as well as major players like Bitcoin and Ethereum. This solid performance is indicative of growing market confidence in AVAX, as it consistently outpaces much of the market.

The token is currently trading above its 200-day Simple Moving Average (SMA), which is a key bullish indicator often pointing to sustained upward momentum. With 17 green days in the last 30 days, AVAX’s price movement has been predominantly positive, further bolstered by its high liquidity, which provides stability against extreme market fluctuations.

However, AVAX remains 82% below its all-time high of $146.18, suggesting there is significant room for growth if the market continues its upward trend. The recent whale activity and increased trading volume hint at growing investor interest, and if this trend continues, AVAX could aim to break its $35 target in the near term.

A break above this level would likely attract more traders and potentially open up the path to higher targets around $50 or more in the medium to long term, provided market conditions remain favorable.

Despite these bullish signs, there are potential limiting factors to consider. The yearly inflation rate of 14.63% means a continuous increase in AVAX supply, which could exert downward pressure if demand does not keep pace.

Additionally, AVAX appears to be overbought at the moment, suggesting a correction may be on the horizon. While this does not necessarily negate the overall bullish outlook, it could mean that before any significant upward movement, AVAX might experience a pullback, allowing the market to stabilize.

In essence, AVAX is well-positioned to climb higher, especially if current trends of whale accumulation, positive sentiment, and technical indicators hold steady. Breaking past the $35 resistance is crucial for any substantial rally, and should the market align in favor of AVAX, targets around $50 or even higher are achievable.

However, market participants should watch for potential overbought signals and be prepared for periods of correction as AVAX navigates its path toward these higher price levels.

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