After reaching a record $151 on Monday, the AVAX price quickly retreated 25% before bouncing from trend support this morning. Avalanche (AVAX) is up 7.4% early Thursday at $123.80, increasing its gains in November to 92% and more than 1,200% from the July lows. However, Avalanche has lost 10th-place to Dogecoin and is currently ranked the 11th-largest cryptocurrency with a market cap of $27.5 billion.
The rise of the smart-contract layer-1 blockchain in the last few months has been astounding. Undoubtedly, the high gas fees on Ethereum have helped Avalanche’s cause. Similar to Solana, Avalanche is fast becoming a bonafide rival to Ethereum (ETH) and now the fourth-biggest Decentralized Finance (DeFi) blockchain with a Total Value Locked (TVL) of over $13 billion. As a result, investors have flocked to the AVAX token, sending its price uniformly higher for the last four months. However, most of the gains have come in the past few weeks, which may be concerning.
The daily chart shows the AVAX price burst through trend channel resistance at $112.40 on Saturday, reaching an ATH the following day. However, the price pulled back sharply on Monday and Tuesday, working off some of the exuberance.
Encouragingly, the reversal bounced from the former resistance, which now provides support at $115.50. On that basis, if the price holds above $115.50, the bulls may push for a fresh run towards $150, and potentially higher.
Therefore, I am currently cautiously optimistic with a $150 price target. However, a daily close below $115.50 could target the lower end of the rising channel, therefore invalidating this view.
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This post was last modified on %s = human-readable time difference 03:25