Avalanche price continued its strong rally as the crypto fear and greed index remained in the extreme greed zone. The AVAX token jumped to a high of $45, its highest level since April 12 and 158% above its lowest level in August.
Avalanche price has strong technicals
The daily chart shows that the AVAX token price is being supported by strong technicals, which could help to push it substantially higher in the near term. AVAX token has formed a golden cross chart pattern as the 50-day and 200-day moving averages have crossed each other.
Avalanche remains about 43% above the 50-day moving average. It has also jumped above the Ichimoku cloud indicator and formed an inverse head and shoulders pattern, a popular reversal sign in the market.
AVAX price has also jumped above the crucial resistance at $37.62, its highest swing on November 12 this year. It has jumped above the Ichimoku cloud indicator.
Meanwhile, the popular Market Value to Realized Value (MVRV) indicator has jumped to 3.2 and is pointing upwards. Other oscillators like the Relative Strength Index (RSI) and the MACD indicators have also risen, which is a sign that the coin is gaining momentum.
While it is still too early to predict, there are signs that the Avalanche crypto price is forming a cup-and-handle pattern whose upper sign is at $65. This pattern is characterized by a rounded bottom.
To predict the potential target for this pattern, traders measure the distance between the lower and the upper side of the cup and extrapolate it from the upper side. In this case, that distance is about 268%.
If we measure a 268% above the upper side, we can estimate that the coin will rise to $240, which is about 458% above the current level. The bullish view will become invalid if the Avalanche price drops below $30.
Meanwhile, crypto analysts are bullish on the AVAX price. For example, in an X post, Satoshi Flipper, who has over 270k followers, identified his next target at $120, citing a falling wedge pattern on the weekly chart. Another analyst cited the fact that AVAX has moved above the Ichimoku cloud indicator on the weekly chart. He expects that the coin will rise to $200.
AVAX price has solid fundamentals
One of the top bullish cases for Avalanche is that it is often seen as an alternative to Solana, a coin that has surged hard this year. Solana has soared to over $250, and analysts expect more gains from it as it closes in on Ethereum. As such, with Avalanche trading at $43, some investors believe that it is a better bet.
Additionally, there are signs that the Avalanche ecosystem is doing well. For example, its DEX volume in the past seven days jumped to almost $2 billion, making it the sixth biggest chain in the industry. Its DEX networks have cumulatively handled transactions worth $174 billion.
Avalanche just needs a vibrant meme coin ecosystem to catch up on Solana as most of the volume in the latter’s platform is on meme coins.
Meanwhile, Avalanche’s futures interest has jumped to a record high of over $534 million, a trend that may continue to accelerate in the near term. Open interest is an important number that looks at the volume of trades in the futures market. It is often seen as a good indicator of an asset’s demand.
Most importantly, there are chances that Avalanche will be a top candidate for a potential spot ETF in the Donald Trump administration. Most analysts anticipate the administration will be more friendly to mainstream crypto projects.
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