AVAX Price Retraces Slightly but Holds Key Resistance Level

AVAX Price Retraces Slightly but Holds Key Resistance Level: Could Avalanche Rally 6,000% as it Did in 2021?

In the last 24 hours, AVAX has retraced by 1%, trading now at $31.2 after an impressive 32% rally over the past week. This price action has brought AVAX to a critical resistance level. If this level is broken, AVAX could potentially revisit its previous yearly highs. Meanwhile, Blockworks co-founder Jason Yanowitz has declared the crypto market’s entry into a euphoric phase, raising speculation about another massive rally for Avalanche. Will AVAX replicate its 2021 surge and soar by 6,000%?

AVAX Price Climbs as Market Euphoria Sets In

AVAX’s current price trajectory hints at the possibility of repeating its 70X rally from the 2021 bull market. Yanowitz’s recent announcement on November 5, declaring the start of a euphoric market phase, aligns with green market days and renewed optimism in the crypto space. He attributes this phase to recent macro events and believes it will be short-lived.

Adding to the optimism, Yanowitz notes that the private investment market is now primed to enter the crypto space. Starting on November 6, major institutional players, who were previously underexposed to crypto, have started calling on VCs and hedge funds to deploy capital, with new crypto-focused funds expected to be announced soon.

In the last bull market, institutional capital flowed in at an unprecedented scale, pushing prices to record highs in 2021. This pattern suggests a potential surge for 2025, mirroring previous cycles.

Avalanche’s Next Price Targets: A Path to $65?

The immediate price outlook for AVAX hinges on overcoming a key resistance level at $32.50. Should AVAX break through, it would likely clear a path toward the $50.50 target, with even $65 within reach if bullish momentum holds. However, a downturn from the current $31 support could push AVAX back to support levels at $23.50 and even $19.

Technical indicators further suggest that AVAX’s rally may have legs. The Average Directional Index (ADX), which signals volatility, is at 22.70 and rising—indicating heightened buying interest. Meanwhile, the Relative Strength Index (RSI) sits at 66.51, slightly below the overbought threshold, suggesting AVAX has room to push higher and test the $32.50 resistance.

Increasing Volume and Investor Interest

According to data from CoinGecko, Avalanche’s trading volume has surged by 55% over the past day, signaling strong investor interest. This spike could add further fuel to AVAX’s bullish outlook in the near term.

Could AVAX Skyrocket by 6,000%?

Given the significant private market investment and Avalanche’s historic 70X rally, some analysts suggest AVAX could post impressive gains again by 2025. If Avalanche repeats its prior bull market performance, a 6,000% rise from its current price would place AVAX at $1,995 with an estimated market cap of $840 billion. However, such a move would mark only a 1,200% increase from its all-time high, suggesting both realistic challenges and enormous potential for long-term growth.

Avalanche’s development has also contributed to its outlook; the recent Avalanche9000 network upgrade positions the ecosystem for scalability, echoing Cardano’s recent gains following its own upgrades.