• Avalanche price is over 50% done with its recovery rally amid an ongoing revival recourse in the market.
  • AVAX could extend the gains 20% to retake the $50.00 range high, last approached on December 24.
  • The bullish thesis will be invalidated if the price decisively loses the $38.64 support level.
  • Durango upgrade is scheduled for activation on the Fuji Testnet on February 13. 

Avalanche (AVAX) price is trading with a bullish bias, nurturing a recovery rally after a strong correction that started on the eve of Christmas, December 24. As altcoins take to a revival recourse, the cryptocurrency could extend the climb to fill its current market range.

Also Read: Avalanche holders brace for $345 million AVAX token unlock and Durango upgrade

Avalanche network readies for the AVAX Durango upgrade

The Avalanche network will implement the AVAX Durango upgrade on Tuesday, February 13. The ecosystem pre-released code for an upgrade to the blockchain on February 2. The upgrade is intended to activate on Fuji Testnet at 11 AM ET on Tuesday.

Along with the Durango upgrade, the network will also see the Avalanche Warp Messaging (AWM) feature go live, improving communication on-chain and across chains. Ultimately, community members will be able to enjoy a network that is not only more interconnected but also more resilient, while at the same time benefitting from the seamless interoperability of protocols on Avalanche.

Avalanche price outlook leans to the upside

Amid euphoria about the AVAX Durango upgrade, Avalanche price is trading above the 50% retracement level of $38.64. Measured from $28.03 to $49.95, the current price is above the midline of this market range, with strong support downward.

The Simple Moving Averages (SMA) are also inclined north, suggesting this is the path with the least resistance. The Relative Strength Index (RSI) is also northbound, pointing to rising momentum after it crossed above its signal line (yellow band). The position of the RSI at 65 also shows there is more room north before AVAX can be considered overbought.

Increased buying pressure could see Avalanche price rise 20% to fill the market range at $49.95. In a highly bullish case, the gains could extend for the price to hit $54.92, levels last seen around May 2022. This would constitute a 35% climb above current levels.

AVAX/USDT 1-day chart

On-chain metrics supporting Avalanche price bullish outlook

The social dominance and social volume metrics for AVAX have eased, suggesting calm in the market, which could bode well for the Avalanche price. Santiment analysts say that when an altcoin experiences high rates of mainstream attention, the fear of missing out (FOMO) tends to lead to increased volatility causing a premature topping out of price.

AVAX Santiment: Social dominance, Social volume

Also, the percentage of stablecoin total supply held by whales with more than $5 million USD is also rising, showing increasing buyer power. Specifically, the significant accumulation of stablecoins by whales indicates they are waiting to buy AVAX, showing a bullish outlook for the market.  The Tether (USDT) market capitalization is also rising, corroborating the assumption as it indicates intention to buy.

AVAX Santiment: Percentage of stablecoin total supply held by hales with more than $5 million USD, USDT market capitalization

On the flipside, if traders cash in on the gains made so far, the Avalanche price could drop below the 50% Fibonacci, to test the $32.08 support. In a dire case, the slump could send AVAX price into the supply zone turned bullish breaker between $26.56 and $29.34. A break and close below the midline of this order block at $28.03 would confirm the continuation of the fall, potentially going as low as the 50-day SMA at $25.03.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP