Avalanche (AVAX) is up 167% since its August lows but is currently facing strong resistance at $48, a level that could determine the future direction of the price.
The digital asset is showing cautious optimism in the market, with the Stochastic Oscillator giving overbought signals.
“AVAX is currently testing a critical resistance level; whether or not it is breached will significantly impact the asset’s bid to reach its previous highs,” a COINOTAG analyst said.
Avalanche has been volatile in 2024, moving between highs and lows. The beginning of the year started hesitantly, but in March, with bullish excitement, it rose to $65.26. This optimism did not last long; as a result of market pressures, there was a sharp decline of 72% and the price fell to $17.72 on August 5. After August, AVAX entered a strong recovery process and stabilized at $45.28 levels, increasing its price by 167%. Now, it is wondered whether AVAX, which is approaching the critical resistance level of $48, will overcome this barrier, retest the $65 level and continue on its way to reaching $100 targets.
Current technical indicators suggest that AVAX is in a bullish trend, but there are some caveats. The Ichimoku Cloud predicts a continuation of the bullish movement, while critical support levels are set at $44.27 and $42.25. In addition, the Accumulation/Distribution indicator supports the bullish trend at 22.82 million, indicating that accumulations are increasing. However, the Stochastic Oscillator is currently in overbought territory and is reaching levels of 83.40, indicating that a short-term correction may be possible. Market participants may need to be prepared for possible fluctuations. In particular, the $44 and $42 levels will be critical support points for the continuation of the upward movement.
According to IntoTheBlock data, AVAX’s trading volume has increased significantly, reaching $800 million by mid-year. However, after this increase, the price dropped to the $19–$27 range in July. In November, the trading volume increased significantly, reaching $566 million, taking AVAX to $35. Currently, trading volume is around $250 million and a steady recovery is observed in the low $30s, indicating that AVAX has further upside potential.
There was a decrease in the number of active addresses in the first half of the year, but during the price increases, the number of active addresses increased to $61 and showed a recovery by reaching around 150K. In the second half of 2024, a stable recovery in active addresses was seen. This indicates a slow but steady growth trend that will support the sustainability of the price recovery. At the end of November, the price of AVAX reached $47; the decrease in zero balance addresses during this period indicates that market confidence is increasing again and the token is becoming more widely used.