Although the token has made significant progress recently, its historical high of $146.22 set on November 21, 2021, remains out of reach, down 68.89% from the peak.
The price of Avalanche [AVAX] is $47.28, having increased by 7.54% in the past 24 hours.
Cooperation is on the way
Go long on Trump. If AVAX rides with the Americans, it will be the next XRP. AVAX is originally a public chain of the American system, and teaming up with Trump would make it invincible.
The resistance level at $48 is an obstacle
In 2024, Avalanche's performance was unstable, with a slight decline at the beginning of the year, then reaching an annual high of $65.26 in March.
Driven by bullish sentiment and increased activity, this peak marks a strong start for the year.
However, since March, AVAX has significantly dropped, with its market cap shrinking by 72%, hitting an annual low of $17.72 on August 5.
Following the low in August, AVAX began a strong recovery with an increase of 167%, reaching $44.83 at the time of publication. In September, the token hit a higher high, indicating a shift in market sentiment.
Currently, AVAX is testing the resistance level of $48. Breaking through this resistance could pave the way for a rise to previous highs of $65 or even $100.
Is a short-term cooldown coming?
At the time of writing, the Ichimoku chart indicates a bullish trend, with Tenkan-sen (blue line) and Kijun-sen (red line) providing short-term support at $44.27 and $42.25 respectively.
The upward momentum is supported by increasing accumulation, with the accumulation/distribution indicator showing an upward trend, reaching 22.82 million.
The stochastic oscillator shows that AVAX has entered the overbought zone, with the blue line at 83.40 breaking above the orange line at 75.89.
This indicates a potential economic slowdown or slight correction in the short term.
AVAX is in a bullish phase, with strong support levels, but overbought conditions may lead to a short-term adjustment before resuming upward momentum.
Traders should focus on the support levels of $44 and $42 during any pullbacks.
Increased sales help AVAX return
IntoTheBlock data shows that the trading volume of AVAX peaked at $800 million in May and June, pushing the price up to $43.
By July, both trading volume and price had significantly declined, with AVAX dropping to the $19 to $27 range.
From August to September, trading volume intermittently surged, providing temporary support for a slight price rebound, but the overall trend remains flat.
In November, trading volume soared to a 7-day high of $566 million, with AVAX's price rising to $35.
As of the time of publication, trading volume remains at $250 million, supporting a stable price around $35. The increase in trading activity indicates a renewed interest, suggesting potential for further price increases.
The adoption rate of AVAX is continuously increasing
From March to June, the number of active addresses peaked at around 150,000, and the price rose to $61. However, in August, both the number of active addresses and the price steadily declined, reflecting a decrease in network activity and market interest.
In the second half of 2024, the number of active addresses tends to stabilize, with moderate growth in new addresses supporting a gradual price rebound.
By November, the price reached $47, as zero-balance addresses decreased by 5.52% in 7 days, indicating that funds are re-entering circulation.
This new activity indicates that market confidence is continuously strengthening, and the utility of AVAX is increasing. Whether it can firmly break through the resistance level of $48 is key to Avalanche's next major move, as the stochastic oscillator warns that AVAX is at overbought levels.