Avalanche (AVAX) continues to attract investors’ attention by continuing its upward trend despite recent price fluctuations. While the altcoin is on track to retest the $50 level this week, market analysts are offering important clues about AVAX’s short-term performance. Regaining the $45 level with a 0.96% increase in the last 24 hours, AVAX brought its trading volume to $2.213 billion. The token, which gained 27.71% in the last week and 72.38% in the last month, is exhibiting a strong upward trend.
The Strength Index (RSI) is back in the overbought territory on the daily chart, while trend lines are also supporting the price’s upward movement. In addition, a Golden Convergence formation has formed on the price chart of AVAX, with the 50-day and 200-day moving averages crossing. This is creating positive price expectations among investors.
Will Avalanche price exceed $50?
If AVAX continues its market momentum, it is expected to test the resistance at $48.25. Breaking this level could take the price to $57.20. However, market dynamics may not always support upward movements.
Growth in the DeFi and NFT Ecosystem:
The Avalanche network continues to be an attractive platform for DeFi projects and NFT applications with its high transaction speed and low cost advantages.
Golden Intersection Formation:
This formation, which is considered a bullish signal in technical analysis, increases investors' confidence in AVAX.
Increased Trading Volume:
The increase in daily trading volume shows continued investor interest.
Risks and Potential Pullbacks
While AVAX has been a strong performer, it is important for investors to be aware of the following risks:
Macroeconomic Factors:
Uncertainties in global markets may lead to fluctuations in the cryptocurrency market.
Risk of Overbought:
The RSI indicator has reached the overbought territory, increasing the possibility of a correction in the short term.
Testing Major Support Levels:
A price drop to critical support levels could undermine investors' confidence.