- Avalanche token price has jumped by more than 480% from the YTD low.
- The coin faces numerous tailwinds as crypto demand rises.
- Technicals point to a 60% jump in the coming weeks.
Avalanche (AVAX) price continued its remarkable rally this week as it surged to its highest point since May 2022. It has risen for four consecutive weeks and has moved by more than 480% from its lowest point this year. This rally has made it one of the biggest coins in the industry with a market cap of more than $17 billion.
Robust ecosystem activity
The main reason why AVAX price has jumped is because of the ongoing tailwinds in the crypto industry. From a macro level, there are signs that the Federal Reserve and other central banks will start cutting interest rates in 2024.
That’s because inflation has moved downwards in the past few months. In the US and UK, it has moved to 3.1% and 3.4%, respectively. In Europe, inflation has dropped to 2.4%, nearing the ECB target of 2.0%.
The other tailwind is that the Securities and Exchange Commission (SEC) is considering approving a spot Bitcoin ETF. As a result, the theory is that such an approval will push it to approve other coins ETFs, including Avalanche.
Further, there is momentum in the industry, as evidenced by the crypto fear and greed index, which has jumped to the greed area of 75. In most cases, tokens like AVAX tend to do well when there is a sense of greed in the market.
Read more: How to buy Avalanche.
Meanwhile, Avalanche’s ecosystem is doing modestly well. Data shows that Avalanche is the sixth biggest chain in the DeFi industry after Ethereum, Tron, BNB, Arbitrum, and Solana. It has a DeFi TVL of almost $1 billion.
A look at some of its biggest components of its ecosystem shows that they are doing well. BENQI’s assets have risen by over 110% in the past 30 days. Similarly, AAVE, Trader Joe, GMX, and Vector Finance, are doing modestly well in this period.
Avalanche price forecast
Turning to the weekly chart, we see that the AVAX price has surged in the past four straight weeks and is now trading at its May 2022 highs. The 50-week and 25-week moving averages are making a bullish crossover.
At the same time, the token has moved above the 78.6% Fibonacci Retracement level while the Relative Strength Index (RSI) has risen as well. Therefore, I suspect that the AVAX token will continue rising as buyers target the next resistance at $58.62, the 68.2% retracement point. A move above that level will see it rise to $76.23, the 50% retracement level, which is 60% above this level.
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