Avalanche price has shown some volatility this week, hitting a strong resistance level at $37.76, its highest point in November. Despite this, some crypto analysts remain optimistic about the potential for AVAX to rally further, with some predictions suggesting a jump to $200 in the current bull run. Analysts like Grronk and Beastlorion have made bold predictions, with some expecting the coin to surge to $130 or even $300 based on its strong technical indicators and positive momentum.
One key indicator supporting the bullish outlook for Avalanche is the formation of a golden cross pattern on the daily chart. This pattern occurs when the 200-day and 50-day Exponential Moving Averages (EMA) cross each other, often leading to significant price gains. In addition, the coin has also formed an inverse head and shoulders pattern, a popular bullish reversal sign, as well as a bullish pennant pattern. A clear break above the upper side of the pennant at $37.76 could signal a move towards $41.88 and beyond.
While the potential for Avalanche to reach $200 is exciting, it is important to be cautious and watch out for key resistance levels along the way. The year-to-date high of $65.30 is a significant level to monitor, as a breakthrough could pave the way for further gains. The ongoing crypto bull run, particularly with Bitcoin approaching $100,000, could also impact AVAX’s price movement. Some traders may rotate from more expensive tokens like Solana to cheaper layer 1 tokens like Avalanche.
In terms of potential downside risks, a drop below the key support level at $30.75 could invalidate the bullish forecast for Avalanche. Looking further ahead, a move below $22.48 may signal more significant downside pressure. As always, it is important for investors to conduct thorough research and monitor market conditions before making any investment decisions in cryptocurrencies. The volatility and unpredictability of the crypto market make it essential to stay informed and adaptable to changing trends and developments.
