Avalanche price may be on the cusp of a 56% bull run if it flips the important resistance level at $31 into a support
Avalanche Price Looking to Retest $42
Technicals point to a potential Avalanche price rally, which could see it rise to the important resistance level at $42, its highest level on May 22.
Odds of this rally rose after the coin found a strong along the ascending trendline that connects the higher lows since August 7. It is also attempting to rise above the 50-day and 100-day Exponential Moving Averages (EMA), signaling that bulls are about to regain control.
Additionally, Avalanche price oscillators have started to point upward, with the Relative Strength Index (RSI) crossing the neutral point of 50. The two lines of the MACD indicator have also pointed upwards and are about to cross the zero line.
Therefore, a volume-supported move above the resistance level at $31, will point to more gains to $42. Such a rally would imply a 56% comeback from the current level.
Image source: Trading View
On the other hand, a drop below the ascending trendline will invalidate the bullish view and signal that there are more bears left in the market. If that happens, AVAX token will drop to the next key support at $17.27, its lowest point in August.
Some analysts believe that Avalanche may continue doing well in the coming weeks. In an X post, CryptoDoc, a popular analyst with 70k followers, predicted that it may have a bullish breakout provided it remained between $22 and $26.
Potential Catalysts For The AVAX Surge
Several catalysts may push the price of Avalanche higher in the near term. In a statement on Thursday, Avalanche said that it acquired 1.9 million AVAX tokens from the collapsed Luna Foundation Guard. Initially set at $45 million, the tokens were now worth $53 million.
Meanwhile, the Federal Reserve may decide to cut interest rates in its November meeting. A rate cut, a day after Donald Trump won the election, may trigger more gains among risky assets, including cryptocurrencies.
Network data shows that the Avalanche blockchain is doing well as the number of active addresses has risen to 94,154, its highest level in two weeks.
Additionally, Avalanche has had several high-profile collaborations in the past few months. Most recently, it was selected to participate in Kinexys, a project by JP Morgan, the biggest bank in the United States. The partnership will explore privacy and identity solutions for large institutions.
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