20% Increase in Avalanche (AVAX) is Expected Before It Cools Off

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Last Updated on December 23, 2023 by Bitfinsider

Avalanche (AVAX) has been getting more expensive as the holidays approach. As a result, the altcoin’s value has more than quadrupled in just over two months. Either way, considering that most other cryptocurrencies have witnessed increases of roughly 300% over the same period of time, the price of AVAX still has more potential.

As AVAX steadily approaches the desired $50 mark—a level it hasn’t reached since May 2022—investors and enthusiasts are closely monitoring whether the cryptocurrency may accomplish this milestone before the end of the current year.

As of this writing, AVAX was trading at $45.59, down 2.1% over the previous seven days; however, Coingecko data indicates that the stock had maintained a 6.7% gain during the previous week. Thanks to its steady ascent, the altcoin has grown to become one of the biggest in the industry, with a market worth of more than $17 billion.

Since October, when the cryptocurrency was trading at a low of $8.50, its value has grown significantly. AVAX jumped by almost 400% with just two months left in the year, establishing a new high of $46.50 and raising hopes that it would reach $50 in the last days of the year.

This remarkable ascent was driven by AVAX’s significant breakthrough—breaking free from a declining resistance trend line that had held for 750 days since its all-time high. This break out from the established trend line was a key technical development and contributed significantly to the acceleration of the price increase for AVAX.

AVAX’s successful run thus far can be attributed to several positive aspects that are propelling the cryptocurrency sector in general. Macroeconomically speaking, alternative assets like AVAX are in good shape because to the recent decline in inflation rates and indications that the Federal Reserve and other central banks may lower interest rates in 2024.

Furthermore, there is optimism that a spot Bitcoin exchange-traded fund (ETF) will be approved by the US Securities and Exchange Commission (SEC). Should this occur, it might open the door for the launch of other cryptocurrency exchange-traded funds (ETFs), like those connected to Avalanche.

The cryptocurrency fear and greed index has increased to 75, indicating a positive sentiment and the industry’s momentum. In periods of market optimism, historical data shows that tokens like AVAX tend to perform well and hold their resilience, which may point to further upward movement in the current market scenario.

Changes in the price of Bitcoin still have an effect, notwithstanding the extraordinary price increase of AVAX. It is likely that the price of Avalanche will drop if Bitcoin does, for whatever reason. In the meanwhile, X’s cryptocurrency analysts predict that the trend will continue to rise.

Flash is expected to close the year at a bullish $65. His optimistic assessment is based on a move above a horizontal resistance zone and a breaking from a long-term trend. Furthermore, Bluntz Capital posted a positive wave count on Twitter, indicating that the price of AVAX is expected to close to $55 at the end of the fifth and final wave.

Concurrently, AVAX’s price continues to rise over the weekly support level at $40 and enters the resistance zone, which spans $51 to $55. This increase would imply a gain of about 20% in relation to the current price of $45.49.

Avalanche (AVAX) may see a high percentage increase prior to a cooldown as momentum in the cryptocurrency space continues to build and notable changes are anticipated. For investors as well as AVAX aficionados, the interaction of economic forces, laws, and market sentiment makes for a compelling narrative.

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