Avalanche rise fueled by the popularity of GameFi could potentially lead to more gains in the new year

  • In just two months, the price of AVAX has increased by more than 400%. 
  • Current support levels include $42.54, $36.89, and $33.34.
  • The bullish premise will be refuted if Avalanche retreats below $20.
  • Apart from GameFi sector, Avalanche is actively funding RWAs through the $50 million Vista programme.

This week, the price of AVAX reached a local high of $46.43, and it is presently trading at $40.96 at the time of writing. The weekly chart showed an imbalance from $45 to $37.94 due to the uptrend that preceded this move. 

AVAX 5-day chart. Pic Source: Trading View

Until next week, this spike in buying pressure is probably going to remain unchanged, which would force the price of the avalanche into consolidation and probably mark the previously mentioned imbalance. Long-term holders should focus on building up their holdings in this range. 

AVAX is now the ninth largest cryptocurrency asset, surpassing Dogecoin (DOGE) following a spectacular spike of more than 90% in the past month. Long-term and short-term triggers work together to propel AVAX’s rise, as it beats nearly all large-cap altcoins. Within the top 10 digital assets, AVAX emerged as the altcoin with the highest rate of growth.

The total value locked (TVL) in decentralised finance (DeFi) AVAX protocols has also increased from $487 million to $949 million in the past two months, nearly doubling in value. 

It is important to note that the AVAX price has not managed to return to the $85.57 mark, after which the decline started last year but it has risen by more than 420% in just two months. Therefore, the withdrawal of these buyers could act as a catalyst, causing the price of AVAX to rise to $57.09 and begin the second leg of the uptrend.

In an extremely bullish scenario, AVAX and other altcoins could witness a historic bull run if Bitcoin ETFs get approved in the new year.  Accordingly, the price of AVAX may continue to rise to the $60 and ultimately the $85 levels. 

But on the flip side, AVAX price would break the bullish market structure and make a lower low below $20. By doing this, the bullish argument would be refuted, enabling the bears to aim for a retest of the support level at about $12. 

Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Puskar Pande

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