CandleFocus

Avalanche price could surge 85% amid rotation from SOL to AVAX

Author: Content Editor
The price of the Avalanche (AVAX) token has been rising and recently crossed an important resistance level. This surge is attributed to factors such as the jump in cryptocurrencies following Donald Trump's election victory and Federal Reserve cuts. The AVAX coin has gained 105% from its lowest level in August and reached its highest swing since June. The 50-day and 200-day Exponential Moving Averages (EMA) have made a golden cross, indicating a bullish continuation. The price rise is further supported by the formation of an inverse head and shoulders pattern and positive indications from the Relative Strength Index (RSI) and Stochastic Oscillator. If the bull trend continues, the AVAX token could target the year-to-date high of $66, representing an 85% increase from the current level. On the other hand, a drop below the key support level at $30 could lead to further downside with the next support at $17.20. One catalyst for the surge in Avalanche price is the rotation from Solana to Avalanche, as Solana becomes increasingly unaffordable for many investors. Avalanche is seen as an alternative to Solana due to its longevity, active developer community, presence in decentralized exchanges (DEX), and success in the stablecoin industry. Furthermore, the potential approval of an AVAX ETF during the new Donald Trump administration could attract institutional investors. However, investors should be cautious about the unlocking of Avalanche tokens in the future, with the next unlock scheduled for November 18.

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