⚠️ Avalanche (AVAX) Could Hit $40 on Bullish Signs
Bullish technicals and positive crypto momentum point to a potential Avalanche (AVAX) rally targeting $40. Here are the key factors that could propel the altcoin higher.
Avalanche (AVAX) has remained in the $30-$39 price range for weeks. After rallying above $60 in March, AVAX dipped to the $35 region and has since struggled to break the $40 resistance. However, recent bullish patterns indicate a possible surge to reclaim the $40 level.
🔸 What's Driving Avalanche's Price?
The overall crypto market momentum often impacts the prices of altcoins like AVAX. Bitcoin's push above $66,000 recently has helped boost buying pressure on Ethereum and other major altcoins.
Ecosystem developments are also aiding AVAX's ascent. Avalanche will assist in managing tokenized U.S. Treasuries on Ethereum, increasing its popularity. Avalanche's new $1 million liquidity mining program called Memecoin Rush aims to attract more meme coin activity.
🔸 AVAX Price Outlook
Based on these tailwinds, analysts predict AVAX could rally to the $40 level in the coming days if it can overcome the $39.02 resistance. Market analyst Omar sees AVAX breaking out of a major trendline, potentially triggering a 40% short-term rally.
Technically, AVAX is forming a bullish engulfing pattern on the daily chart as buyers return. It has found support at $34.04 and is testing the $37.70 resistance. A breakout could quickly push AVAX to $40. The RSI indicator rising into bullish territory also supports more upside.
However, over 28% of the circulating AVAX supply is held by short-term investors who could sell into a rally. A large demand barrier also exists around $38 where over 12 million AVAX were purchased.
Overall, while bullish momentum is building, AVAX may face further consolidation if sellers continue limiting major breakouts. A decisive move above $39 is needed to spark the next rally toward $40 and higher.
