As Bitcoin ends the week on a depressing note, the altcoin market continues to be divided on the topic, with some altcoins taking it better than others. For example, the price of Avalanche (AVAX) has surged to a strong $40 level.
On the weekly chart, the recovery rally in the AVAX price trend is visible, marking the 23.60% Fibonacci retracement level. Supporting our bullish AVAX price prediction, a bullish sweeping candle on the weekly chart indicates a trend reversal.
Source – Trading View
Avalanche Network Takes the High Road
The remarkable recovery of Avalanche network strength signals impressive growth for the AVAX ecosystem. According to on-chain platform DefiLlama, the total value locked is on a recovery path and has reached $1.852 billion. The number of active addresses in the last 24 hours reached 70,301. Likewise, inflows in 24 hours hit a high of $6,65,674.
Source: DefiLlama
Moreover, trading over the network is also showing a similar upward trend and may soon hit a new 52-week high. The ecosystem is set to explode in 2024, as the network plans to finish 2023 on a high note in terms of TVLs, active addresses, transactions, and inflows.
AVAX price delivers new breakout sprint
While the 4H chart continues the recovery after a brief pullback, trend-based Fibonacci retracement levels portend a strong trend ahead. Currently, AVAX price is trading at $41.44 with an Intrada growth rate of 4.52% despite the decline of the market leader and other top altcoins.
Source: TradingView
AVAX price action shows a bullish attempt to fuel a continued recovery with a breakout of the $41 high. Moreover, a bullish reversal could cause the AVAX cryptocurrency to surge above the 38.20% level. Depending on the Fibonacci levels, the uptrend could reach $55.49.
Technical indicators:
RSI: The RSI indicator shows a downward trend in the overbought section of the 4H chart, reflecting a short breathing phase. However, the recent spark could soon pump the RSI into overbought territory again.
Will AVAX price exceed $50?
While there is a brief pause in the market recovery, AVAX price remains active and expectations of a new breakout are fueling bullish sentiment. Moreover, Fibonacci levels are hinting at a strong upward trend, with a growing possibility of crossing the $50 mark.
Additionally, if the market improves, the AVAX price could rise above $42.
In this case, the upward trend could reach $55. However, if supply increases, the Avalanche’s market value could retest the $40 mark.