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Price Analysis

Chances of AVAX Rallying Towards All-Times High: Outlook at AVAXUSD

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While most of the crypto market begins to become cautious in order to protect itself from more price declines, AVAX is already on its way to recouping all of the losses it sustained this month. With an almost 43% increase this month, the network has seen a massive rush of money and activity – which is not the case with most other cryptocurrencies.

At the moment, Avalanche is most popular for its industry-leading projects (Trader Joe is a great example of a successful project on this blockchain). Also, AVAX was one of the fastest-growing cryptocurrencies in 2021 and, at the time of writing, stays at no. 8 in the top 10 cryptocurrencies.

Key Takeaways (AVAX)

  • The announcement of the AVAX listing on Kraken Exchange is one of the main causes of the recent surge. Notably, deposits for the cryptocurrency are already open, and trading will begin on December 21.
  • BitGo, the industry leader in digital asset financial services, has added support for the Avalanche native token (AVAX) and assets issued natively on Avalanche’s C-Chain to its custody and hot wallet solutions. This provides BitGo’s clients with the safest and dependable means of accessing the constantly expanding Avalanche ecosystem.
  • Avalanche has partnered with @DeFiAlliance to deliver its accelerator programs to the Avalanche community.

Institutional interest in Avalanche’s groundbreaking blockchain technology is growing. Deloitte has announced intentions to build a cloud-based disaster-management software using the three-tiered Avalanche blockchain network. A Bank of America analyst believes Avalanche has the potential to be a strong rival to Ethereum.

AVAX Sentiment

AVAXUSD Weekly sentiment

Source: https://www.interactivecrypto.com/Technical-Analysis/avax-usd

Weekly Chart Breakdown of AVAXUSD

AVAXUSD weekly Price Analysis

Source: TradingView (AVAXUSD)

The market had a bearish divergence on the AVAXUSD weekly chart. After touching the all-time highs of $146.22, the price came back in an aggressive selloff then settled on a weekly supply zone near $77. In the past two weeks, AVAX gained 23.64%. The weekly sentiment of AVAXUSD remains bullish as long as the price is above the support at $77.

Daily Chart Breakdown of AVAXUSD

AVAXUSD Daily price Analysis

Source: TradingView (AVAXUSD)

The cryptocurrency had a bearish day and dropped below $120. The price almost retested the 20 EMA. We can see a bullish divergence in the daily time frame that caused the recent surge in the market. Daily AVAXUSD sentiment remains bullish.

4 Hour Chart Breakdown of AVAXUSD

AVAXUSD 4h Price Analysis

Source: TradingView (AVAXUSD)

The AVAX price is moving in the $77-$146 range. After testing the support of $77 multiple times, the price had a sharp rally breaking above the $102 level. Now, the market is testing $102 support. If the bulls can keep the price above $102, we could see a surge towards $120. 4Hour market sentiment remains bullish.

1 Hour Chart Breakdown of AVAXUSD

AVAXUSD 1h Price Anlysis

Source: TradingView (AVAXUSD)

An obvious bullish divergence (RSI indicator) could provide a buying opportunity targeting $120 and then $127. Otherwise, a break below the psychological level of $100 could cause market tanking towards $90.

Final Thoughts

Avalanche enhances its interoperability with other blockchains that want to join the Avalanche ecosystem. Market analysts suggest that we could see AVAX at $200 before the end of 2022. Could that be true?

I have been in financial markets since 2013. With a diverse experience of different asset classes, I trade and create educational content for Crypto, Forex and Stock Markets.

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