Avalanche (AVAX) Rockets 10% Higher, Overtakes Dogecoin in Market Cap

• Avalanche (AVAX) gained 17% over the weekend to hit a monthly high, topping $41 to leapfrog Dogecoin and storm into the top ten with a $14.1 billion market cap.
• Currently trading at $38.73, AVAX gives mixed readings on the technical analysis, with a close above $40 likely to kickstart a short-term rally.

Avalanche has stormed back into the top ten, overtaking Dogecoin after a weekend rally that took AVAX above $41, and despite a slight dip today, the crypto maintains a market cap above $14 billion.

The rally started on Friday, Feb. 9, when AVAX was trading around $35, recovering from a mid-week price dip that bottomed at $33.76. AVAX peaked on Sunday, Feb. 11, when the price hit $41.1, the highest it has traded since Jan. 3.

With the surge, AVAX surpassed Dogecoin to reclaim the ninth position on the chart. Since hitting its peak, it has dipped slightly and at press time, it was trading at $38,73, shedding 2.80% in the past 24 hours. However, despite the dip, it has maintained its lead over Dogecoin with a market cap of $14.24 billion.

🚀 #Avalanche (AVAX) leaps over #Dogecoin to claim the 9th spot, with its price soaring by 10%! 🌪️ With resistance levels breaking, a massive 25% rally could be on the horizon. Will AVAX hit $50? 📈💥 #CryptoNews #BullishTrend #MarketWatch #AVAXvsDOGE #AVAX #DOGE pic.twitter.com/tHf4yX8E8i

— Marcel Knobloch aka Collin Brown (@CollinBrownXRP) February 12, 2024

Avalanche has set its new support at $30. Zooming out, this price level has been the resistance for 18 months, and prior to the December 2023 price surge, the last time AVAX traded above $30 was in May 2022. Attempts to break past this resistance in August of that year and February last year failed.

After breaking past this resistance in December, AVAX has maintained above it and has made it the support. The recent dip in the past few weeks bottomed out on Jan. 22 (as shown with the green icon on the graph below) at around 430.48, and the price bounced back to top $41.

What’s Next for Avalanche (AVAX)?

Despite the price surge, the technical indicators give a mixed reading for AVAX. The relative strength index is above 60 at press time, but over the weekend, it has been below 50, indicating the bulls are now in control.

On the price chart, the upward momentum since its Avalanche’s bounceback on Jan. 22 has been bound by an ascending parallel channel, as shown in the graph below. This usually ends up in a correction.

Avalanche’s price chart underscores the importance of the $40 price level. Even with the ascending parallel channel, this price level remains critical, and on Feb. 10, it was proved to be the upper bound and rejected the upward movement. A daily cross above this level would set AVAX up for short-term gains, with some analysts predicting that a successful breakout will push AVAX above $50.

Meanwhile, the Ethereum rival is set to face major headwinds this month. The most significant will be on Feb. 22, when the project will release 9.5 million tokens in its next scheduled token unlock. At press time, this is valued at $373 million, which could significantly impact the price momentum at a crucial time for the token.

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