Avalanche price rose and crossed an important resistance level as cryptocurrencies jumped following Donald Trump’s election victory and Federal Reserve cuts. The AVAX token jumped to a high of $35.55, its hghestc swing since June 7. It has popped by 105% from its lowest level in August.
Avalanche price could surge 85%
The AVAX coin soared and crossed the crucial resistance level at $33.10, which was its highest level on June 2021 and the 50% Fibonacci Retracement level. Notably, the 50-day and 200-day Exponential Moving Averages (EMA) have made a golden cross, which is a popular sign of a bullish continuation.
Avalanche price has also formed an inverse head and shoulders pattern, which is often a sign of a bullish reversal. At the same time, the Relative Strength Index (RSI) and the Stochastic Oscillator have all pointed upwards, meaning that the coin is gaining traction.
Therefore, there is a likelihood that the Avalanche price will continue rising as bulls target the year-to-date high of $66. If this happens, it means that the AVAX token will need to rise by 85% from the current level. On the flip side, a drop below the key support at $30 will point to more downside, with the next point to watch being at $17.20.
Rotation from SOL to AVAX
One of the potential catalysts for the Avalanche price is the rotation from Solana to Avalanche as the former gets more unaffordable to most people.
Solana has been one of the best-performing major cryptocurrencies this year as it crossed the important resistance point at $217. This trend will likely attract more institutional investors as they predict that the new Donald Trump administration willl approve an AVAX ETF.
However, Solana is now increasingly becoming more unaffordable to most people, leaving investors looking for similar cryptocurrencies to invest in. One of the most obvious ones is Sui, one of the fastest-growing layer-1 networks in the market, which is trading at $3.
Avalanche will be the next alternative for three main reasons. First, Avalanche, like Solana, has been around for many years, making it a trusted cryptocurrency. Just recently, the developers launched an AVAX credit card.
Second, Avalanche has an active developer community. For example, it is the ninth-biggest chain in terms of DeFi total value locked (TVL) with over $1.26 billion in assets. It also has over 410 DeFi applications, including popular names like BENQI and Trader Joe. It is also one of the biggest players in the stablecoin industry, with its $1.7 billion assets.
Third. Avalanche is one of the most popular blockchains for Decentralized Exchanges DEX). Data shows that its DEX volume jumped by 118% in the last seven days to over $1.54 billion. The biggest Avalanche DEX networks are LFJ, Uniswap, Pharaoh Exchange, Dexalot, and WOOFI.
Further, there are rising odds that there will be an Avalanche spot ETF now that Gary Gensler’s term as the head of the Securities and Exchange Commission (SEC) is about to come to an end. Trump has promised friendly regulations for the sector, and ETF approvals could be one way to show that.
Additionally, Avalanche price will likely surge as more developers embrace its network for meme coin creation. Meme coins like Dogwifhat, Popcat, and Bonk are the ones that have made the Solana ecosystem highly vibrant in the past two years.
A key risk for investing in Avalanche is that it still has some way for its tokens to be unlocked. Its next token unlock will happen on November 18 when 1.67 million tokens will be unlocked. It will be followed by a similar amount five times in 2025.
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