- AVAX broke out of a two-month consolidation period
- Technical indicators and market sentiment looked very favorable for AVAX
AVAX is finally out of the slump. After a significant period of consolidation, the daily charts finally registered an uptick in activity. Could this be the moment the price shoots to $50?
At the time of writing, AVAX was trading at $36.90, having risen more than 7% in just 24 hours.
AVAX’s rise in bullish momentum
Over the past two months, AVAX has been quietly preparing for a big rally. During the consolidation period, the price has only retreated 0.382 Fibonacci level from the bear rule depths, indicating strong underlying support and the potential for a recovery.
This movement pattern has developed into a classic bullflag on the charts – one that could indicate a big breakout coming soon. Furthermore, sentiment around AVAX is now overwhelmingly bullish as well.
Market experts, community members, traders and investors are all attuned to its frequency and anticipating a near-term rise. In fact, data from Mint glass revealed that AVAX trading volume has increased by 6% in the last 24 hours alone.
Source: Coinglass
State of the Avalanche ecosystem
Avalanche is also innovating its platform to enter areas previously dominated by giants like Ethereum. By tokenizing real-world assets like a fine wine investment fund, Avalanche recently unveiled its vision for a diversified asset ecosystem.
This strategy responds to the rising demand for tokenized assets. It’s a smart alignment with Ethereum, which has already managed massive volumes of tokenized assets, including $381 million in United States government bonds alone.
It has also launched ‘Memecoin Rush’, a liquidity mining incentive program. By injecting $1 million into this initiative, Avalanche aims to catalyze activity within the memecoin sector on its network.
Down to $50?
AVAX’s ability to reach $50 in the next six weeks depends on whether the company can maintain its current bullish pressure within favorable market conditions. If current momentum continues, boosted by strong buying volume and bullish market sentiment around Avalanche, there is a plausible scenario in which AVAX approaches the $50 mark within the next six weeks.
In fact, the price has already shown in the past that it is capable of rapid increases.
However, before AVAX reaches $50, the next challenge lies in breaking the subsequent resistance levels, which based on historical performance are around $40 and $45. a consolidation above any level would be critical to maintain momentum north towards $50.