Avalanche has been the best-looking chart among the layer-1’s, which turned out to be among the best performers in recent times. The AVAX price soared with absolute perfection, jumping from the October low of around $8.77 to the November high of $24.69. This 200% jump in prices was catalyzed by many reasons, and a couple of huge announcements built bullish momentum around the top 12th crypto.
What led to the AVAX Price Rally?
The AVAX ecosystem was packed with some exciting announcements in the past week. Starting with the Avalanche House, which revealed the future plans for Avalanche 2.0. This is expected to increase the speed, integration, and interoperability of the Avalanche Network. Besides, the network made a strategic shift and became the RWA and FX Chain, providing the necessary infrastructure to onboard the trillions.
Avalanche made some notable partnerships, which include JPM, Citi, Wisdom Tree, T.Rowe Price, KKR, etc. These reasons led to a significant increase in all core metrics like the number of contracts deployed, C-Chain transactions, DEX volume, and most importantly, AVAX price. This is expected to further attract retail and institutional exposure too.
Besides, the projects that are under development are likely to benefit from a resurgence of liquidity along with a fine rise in positive market sentiment. They include Joe (JOE), Steakhut Finance (STEAK), Beniqi (QI), Husky Avax (HUSKY), Shrapnel (SHRAP), Beam (BEAM), and Dokyo.
Will This Raise the AVAX Price to $50 in 2023?
The AVAX price recently broke from a multi-year falling wedge and rose over 100% to mark new yearly highs close to $25. After a fine rise, the bulls appear to have drained to some extent, due to which a minor pullback could be on the cards.
The weekly RSI tested the overbought region and is preparing to validate a notable pullback. This could cause the AVAX price to test the lower support zone between $20.4 and $21.5 and compel the price to consolidate here for a while. However, after a brief consolidation, the Avalanche (AVAX) price is believed to trigger a rebound and rise towards the pivotal resistance at $40.76 in the first few weeks of 2024.