AVAX has fallen below the $50 mark, signaling a retreat from its previous highs. The cryptocurrency experienced a significant surge in value over the past few months, with a 500% increase in just 90 days. However, it has since experienced a bearish breakout and reached a low point of $31.20 on January 8, 2024.
Despite this recent decline, analysts on Platform X remain bullish on Avalanche’s prospects. Mars_DeFI points to various fundamental and technical reasons for optimism, including an increase in daily active addresses, daily transactions, total value of locked assets (TVL), and DEX volumes. Additionally, the recent burning of over 4 million AVAX tokens and upcoming upgrades are expected to contribute to the token’s future success.
Another analyst, Umutak47, identifies a bullish breakout of a descending resistance line, which suggests further growth potential. Even the bearish trader Capo allegedly predicted AVAX’s rise, emphasizing its evident nature.
However, some signs indicate that AVAX may have reached a local top. A closer look at the daily timeframe reveals a completion of a five-wave upward movement, accompanied by bearish divergence in the daily RSI. If this holds true, AVAX may undergo an ABC correction structure, with wave B leading to a rise to $45 before a 25% drop to complete wave C at the 0.5 Fibonacci retracement level at $29.
Nevertheless, if AVAX manages to surpass the $50 resistance line, it could indicate the completion of the correction and potential for a 70% rise to the next resistance at $66.
Please note that all information provided is based on good faith and objectivity, and should be used for informational purposes only. Readers should exercise their own judgment and bear full responsibility for any actions taken based on the information provided.