- Potential Bullish Reversal: Traders like Marzell and Kaleo suggest that AVAX could rebound if it holds support between $15-$20, with price targets ranging from $43.84 to $80.03.
- Positive Catalysts: Key developments like Avalanche’s potential inclusion in the White House Crypto Summit, Balancer V3 integration, and real-world asset tokenization could boost AVAX’s recovery.
- Bearish Technical Indicators: Despite positive sentiment, AVAX faces strong selling pressure, with technical indicators showing consolidation and a continued downtrend unless market sentiment shifts.
After a rough few months, the Avalanche community is starting to feel a glimmer of hope for AVAX. The talk is that a potential bullish reversal could be on the horizon, thanks to some interesting developments within the ecosystem and an increase in adoption.
Trader Insights: Marzell and Kaleo Weigh In
In a recent post on X, trader Marzell shared his thoughts with his 37.6k followers. He mentioned that AVAX was testing a crucial support zone between $15 and $20. If this support holds strong and AVAX manages to close the week above $30, he sees a solid rebound in play—possibly pushing the price to $43.84. But, he didn’t stop there; Marzell suggested that if it breaks past that, the price could surge even further to $58.06, and who knows, maybe even hit $80.03.
Meanwhile, the ever-popular trader Kaleo posted a chart, suggesting that AVAX is sitting in an accumulation zone, which looks suspiciously like the pattern seen last November before a massive 125% rally. He teased, “Something like this,” implying that we might see history repeat itself.
Current Market Overview for AVAX
At the time of writing, AVAX was trading at about $20.64, with a market cap of over $8.5 billion and a 24-hour trading volume of $538 million. Even though it’s a long way from its all-time high of $144.96 (set on Nov. 23, 2021), there are several key factors that could drive a comeback.
Multiple Positive Catalysts in Play
- White House Crypto Summit: First off, Avalanche CEO Emin Gün Sirer sparked some excitement by hinting at his possible appearance at the White House Crypto Summit. That’s got people buzzing with the thought that AVAX might get a spot in the nation’s crypto strategic reserve plans. Given the growing pro-crypto sentiment in U.S. politics, investors are hopeful that AVAX might benefit from government-backed initiatives—especially considering Ava Labs, which developed Avalanche, is based in New York.
- Balancer V3 Integration: The Avalanche community is rallying to bring Balancer V3 to the network. If this proposal goes through (voting ends March 11, 2025), the decentralized automated market maker will bring advanced liquidity tools and fresh trading strategies to Avalanche’s DeFi ecosystem, helping to boost the platform’s overall performance.
- Real-World Asset Tokenization: Avalanche has been gaining traction in the real-world asset tokenization space. In fact, it’s now the 7th largest blockchain by DEX volume, which recently saw an 18% rise, hitting nearly $1.345 billion. The real kicker? An Indian town has adopted Avalanche’s blockchain to tokenize over 700k land records. It’s proof that Avalanche is finding real-world utility, which has been well received by the community.
source: x/Marzell
Positive Social Sentiment for AVAX
On top of all this, Santiment data shows a positive shift in AVAX’s social sentiment. The community seems more confident, with the weighted social sentiment climbing steadily since the beginning of the week.
AVAX Price Analysis: A Bearish Note?
Still, not everything is sunshine and rainbows. At the time of writing, several technical indicators are flashing warning signs. On the 1-day/USDT chart, AVAX has dropped back below the descending trendline it’s been stuck under since Jan. 18. It’s a clear sign that the bearish trend is still in play.
Looking at the MACD and signal line, they’re staying close together, hovering below the price level—suggesting that AVAX is still in a period of consolidation. On top of that, the Aroon Up indicator sits at 78.5%, while the Aroon Down is at 0%, signaling strong selling pressure and a dominant downtrend.
So, What’s Next for AVAX?
Well, unless something shifts drastically in market sentiment, AVAX is likely to keep struggling. As of now, the token is down 6.5% on the day, trading at $20.5 per coin. Until those technical indicators change or new catalysts push the price up, the downtrend might continue.
