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Avalanche price went vertical as cryptocurrencies surged. AVAX rose to a high of $16.45, the highest point since November. It has surged by more than 51% from the lowest level in December 2022. Other tokens in its ecosystem like Trader Joe (JOE) and GMX have also surged by more than 20% in the past 24 hours. Bitcoin has also moved above the key resistance level at $18,000.
Avalanche price jumped sharply as investors reacted to the ongoing FTX bankruptcy proceedings. There was an important update on Wednesday. Court filings showed that FTX had managed to track about $5 billion of liquid funds. These funds can easily be converted into cash and returned to customers.
There are also hopes that asset sales will help raise more funds for the company. Some of the assets that could be sold are FTX Europe, FTX Japan, and LedgerX. As such, analysts believe that the company can be relaunched out of bankruptcy.
AVAX price also jumped as the total value locked (TVL) in its ecosystem rose. According to DeFi Llama, the TVL in Avalanche has jumped by more than 7% in the past 24 hours to over $852 million. This is significantly lower than its all-time high of over $10 billion.
Trader Joe’s JOE token has risen by over 20% in the past 24 hours according to data compiled by Binance. The DEX has been in an expansion mode recently as it announced plans to expand its ecosystem to Arbitrum and BNB Chain.
The most important catalyst for Avalanche price is the decision by Amazon to select its technology for blockchain solutions. This is notable since Amazon is the biggest e-commerce and cloud computing company in the world. As such, this is a stamp of approval about Avalanche’s business and its ecosystem.
However, AVAX buyers should be careful about this Amazon news. In the past, such announcements tend to lead to an initial pop that fades within a few days.
The 4H chart shows that the Avalanche crypto price went parabolic this week after the Amazon announcement was made. The pop happened at a time when Avalanche was in a slow upward trend. As it rose, the token surged above the important resistance level at $14.6, the highest point on December 13. It has also moved above all moving averages while the Relative Strength Index (RSI) moved above the overbought level.
Therefore, I suspect that this remarkable comeback will run out of gas soon. If this happens, the next key level to watch will be at $15. This is an important level since it matches my Avalanche forecast for December last year.
This post was last modified on Jan 12, 2023, 05:05 GMT 05:05