Altcoin Avalanche (AVAX), continues to draw the attention of investors with its impressive performance in the cryptocurrency market. Today, it has maintained its strong momentum by surpassing the $61 mark, the highest level since the TerraUST collapse in May 2022. So, what can be expected for the AVAX price going forward?
Why Did AVAX Price Increase?
Spot market demand emerges as the main driving force behind the rise in AVAX price. Derivative market trends indicate that the rally is largely supported by organic spot market demand rather than leveraged speculative trading. This suggests an increase in confidence in the project’s real value and belief in its long-term potential by investors.
When evaluating the near future performance of AVAX, it is also necessary to consider historical accumulation trends. Currently trading above the $61 level, AVAX could rise to $74 before reaching the next major resistance level. However, this forecast can change depending on the overall market dynamics and potential price fluctuations.
Derivative Market Data Contributes to Altcoin AVAX Price
Data from the derivative markets also provide some clues about the future direction of the cryptocurrency AVAX price. An 89% decrease in funding rates indicates that the ongoing price rally is organic and the impact of speculative leveraged trading is limited. This could increase investors’ long-term confidence in AVAX and push the price even higher.
Next week, it is predicted that the AVAX price could rise further towards the $70 levels. However, in the short term, it should not be forgotten that the bulls may encounter significant resistance at the $65 level. If a decisive breakout occurs above this level, a significant rally towards $75 could begin.
Of course, as always, risks should not be overlooked. Volatility in major cryptocurrencies like BTC and ETH could negatively affect the AVAX price and carry the risk of a pullback towards the $50 levels.
However, low funding rates reduce the risk of margin calls for bulls in leveraged long positions. Therefore, it seems likely that the AVAX price will avoid rapid declines. At this stage, it seems likely that the cryptocurrency AVAX price will move towards the $75 levels in the near future.
