25 February, 2024

AVAX Targets Major Gains, Eyes $40 Mark Amid Bullish Momentum

3 months ago

23 Feb, 2024

  • Avalanche’s (AVAX) price has seen a remarkable 236% increase since the market’s bullish turn, indicating strong investor confidence.
  • The altcoin is now at a pivotal point, facing a crucial supply barrier between $26.00 and $29.00, which could determine its next move.
  • A decisive break above the $28.00 midline might signal a continuation of the upward trend, with potential targets above $30.00.

Avalanche is currently exhibiting a bullish stance, as evidenced by its recent technical patterns. The digital asset has experienced a substantial 236% increase in value since the market’s bullish shift, showcasing significant momentum. However, it’s approaching a critical juncture as it encounters a major supply barrier that ranges from $26.00 to $29.00.

Source: CoinMarketCap

The altcoin’s price has been on an upward trajectory since mid-November, with bullish sentiment continuing to drive its value. As of writing, AVAX is hovering around $27.47, with a gain of 4.05% in the last 24 hours. This surge has raised hopes of a potential breakout as analysts and traders closely monitor the cryptocurrency’s performance. The current market capitalization of AVAX stands at $5.36 billion, ranking it 11th among the top 100 cryptocurrencies by market cap.

This supply zone is crucial for AVAX’s future price trajectory. If buying pressure intensifies and the price surpasses current levels, particularly the midline of the supply zone at $26.00, it could confirm a continuation of the bullish trend. This scenario would open the door for further advances, potentially breaching the psychologically significant $30.00 mark and aiming for the $32.00 resistance level.

In an optimistic outlook, Avalanche’s price trajectory could align with the influence of the fair value gap (FVG), which lies between $38.12 and $41.07. A break above the midpoint of this zone, around $40.00, would be a strong indication of an upward extension. Such a movement could represent an impressive 40% increase from its current position.

AVAX/USD 1-day price chart, Source: TradingView

The technical indicators support the bullish outlook of AVAX, as seen in its daily charts. The moving average convergence divergence (MACD) indicator shows a clear buy signal, with the MACD line crossing above the signal line. Additionally, the relative strength index (RSI) is comfortably above 70, indicating strong buying pressure and room for further gains. The Awesome Oscillator (AO) also depicts a bullish trend with no signs of exhaustion yet.