The price of Avalanche (AVAX) recently broke a key resistance level, following Trump’s election win and the Federal Reserve’s rate cuts. The AVAX token reached a high of $35.55, marking its peak since June.
Avalanche Has Room for an 85% Increase
AVAX surpassed a critical level of $33.10, its highest since June and a 50% Fibonacci retracement level. A golden cross also formed between the 50-day and 200-day moving averages, often a signal of continued growth. Furthermore, Avalanche’s chart shows a bullish inverse head-and-shoulders pattern, and the RSI and stochastic oscillator are trending upward, indicating AVAX’s strengthening momentum.
Analysts predict that if AVAX maintains its current momentum, it could reach a target price of $66, representing an 85% rise. However, if the price falls below $30, a further decline toward the $17.20 support level may follow.
Shift of Investments from Solana to Avalanche
One driver that could boost Avalanche’s price is the potential rotation of investments from Solana to Avalanche. Solana has experienced strong growth this year, attracting institutional investors who anticipate an AVAX ETF approval from the incoming Trump administration.
With Solana’s rising price, investors are looking for more affordable alternatives, among which Avalanche stands out. Avalanche’s long-standing presence and active developer community, which recently launched an AVAX credit card, increase investor confidence.
Avalanche’s Ecosystem
Avalanche has a strong developer community and ranks among the top 10 blockchains by total value locked in DeFi (over $1.26 billion). It supports over 410 applications, including well-known projects like BENQI and Trader Joe, and holds a significant position in the stablecoin space with assets totaling more than $1.7 billion.
Avalanche is also among the most-used blockchains for decentralized exchanges (DEX). Over the past week, its DEX volume has surged by 118%, reaching over $1.54 billion. Major DEXs on the Avalanche network include LFJ, Uniswap, Pharaoh Exchange, Dexalot, and WOOFI.
Possibility of Spot ETF Approval for Avalanche
With Gary Gensler’s term as SEC chair nearing its end, the likelihood of a spot ETF approval for Avalanche is increasing. Trump’s promise of favorable regulations could materialize in support for crypto through such an ETF.
Risks Associated with Investing in Avalanche
Investing in Avalanche carries risks, including the upcoming token unlocks. The next token release is scheduled for November 18, with 1.67 million tokens set to be unlocked. Similar releases are expected five more times in 2025.
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