Avalanche (AVAX) price increase has captured the entire market’s attention. Although the price rise seems coincidental, recent data shows that such an increase has been expected for months. So, how high can the AVAX price go with a potential bull rally?
AVAX Comments
AVAX bulls appeared to regain control with a 19% price increase over the past seven days. More importantly, this situation became more noticeable in the last 24 hours, and the AVAX price continued to rise.
As of the time of writing, AVAX was trading at $32.31 with a market cap of $12.7 billion, ranking it 11th on the Coinmarketcap list. Data from IntoTheBlock showed that more than 55% of Avalanche investors were already profitable.
One of the analysts who drew attention with his comments, World of Charts, stated that AVAX had already broken a positive formation, which could be a significant factor in the price rally.
According to the shared information, the Avalanche price has been moving within the formation since March when Bitcoin was heading towards its ATH, and the mentioned price break occurred just a few days ago. An analysis based on the data indicated that the upward trend might continue.
Will AVAX Price Rise?
Based on the above analysis, the price could double. On the other hand, AVAX’s on-chain data presented a different picture. AVAX’s transaction volume increased along with its price, laying the foundation for a bull rally. The rise in social volume, indicating AVAX’s growing popularity, was also observed.
The token’s weighted sentiment indicator also showed an increase, indicating a growing bullish sentiment around the token.
AVAX’s daily chart analysis showed that the support level was at $31.4, and this level had been tested. With successful consolidation, AVAX could return to the $41 level.
On the other hand, the Money Flow Index (MFI) was approaching an overbought region, which could reflect a scenario of increasing selling pressure for AVAX. Additionally, a decline in the Chaikin Money Flow (CMF) indicator was noted.
All these indicators suggest the possibility of a decline in AVAX in the coming days, but it is essential to remember that market conditions can change.
Hyblock Capital’s heat map data indicated that AVAX’s movement above the $33 level is significant. This level is reflected in the charts as a heavy liquidation level. Additionally, the increase in liquidation was seen to cause corrections. If sentiment turns bearish, AVAX could drop to $26.
