Avalanche (AVAX): Resistance at $48 is now support and a growth opportunity
The price of Avalanche (AVAX) is currently at $49.7, up 3.60% in the last 24 hours. The market cap is now at $18.53 billion and the trading volume is $827.93 million. The coin has seen fluctuations between $43.37 and $45.95. Despite the gains, it is still down 68.89% from its all-time high of $146.22 in November 2021.
The story is that AVAX has faced strong volatility this year. It started 2024 with a slight decline, then rose and reached a high of $65.26 in March. But then it fell by 72%, and reached a low of $17.72 in August. After that, the coin rebounded by 167%, and is currently testing resistance at $48. If it breaks this level, we may see it rise to $65 or even $100.
As for short-term indicators, there is a possibility of a temporary stagnation. The Ichimoku cloud shows that the trend is still up, with support at $44.27 and $42.25. However, the stochastic oscillator is giving signals that AVAX is in an overbought zone, which could cause a slight decline before continuing the upward trend. Traders should pay attention to the support levels at $44 and $42 in case of any decline.
Volume played a big role in AVAX’s recent rally. In May and June, volume hit a high of $800 million, but dropped significantly in July. From August to September, volume started to rise in small increments, which helped the price a bit. In November, volume hit a 7-day high of $566 million, sending the price to $35. Currently, volume is at $250 million, which shows some stability.
The growing adoption of the coin also had an impact. Active addresses peaked at around 150,000 between March and June, when the price reached $61. But then the number of addresses declined until August. In the second half of 2024, active addresses stabilized, and new addresses started to increase slightly. In November, the price reached $47, and the number of unbalanced addresses decreased by 5.52% in a week, which means that money is returning to circulation. This movement indicates increased confidence in the market and a rise in the interest of AVAX.
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