- The Avalanche MVRV score of 0.82 indicates that this altcoin is probably undervalued.
- A breakthrough above the $28 mark could pave the way for a move toward the $40 target.
- Analysts are keeping an eye on volume and RSI as indicators for confirming a bullish reversal of AVAX price.
Market sentiment and Avalanche (AVAX) price action have historically been crucial to its performance. Recently, the overall sentiment in the crypto market has been quite negative. However, it appears that the AVAX price may be on the verge of a rally as it approaches a key support level on the daily chart.
The broader crypto market has started displaying intriguing price movements, drawing the attention of investors in the altcoin sector. Currently, the AVAX crypto is trading near its support zone at $23.32, oscillating around this price point.
Analysts anticipate that a breakout above $28 could generate significant buying momentum. Despite the asset’s inherent volatility, experts suggest that if the price surpasses the $28 mark, it could potentially soar to $40 in the short term. It might also reach $65 over the long term.
Continue reading for more valuable insights on the Avalanche price.
AVAX MVRV score has risen since August 2024, reaching 0.77 points. Is it still cheap?
MVRV (Market Value to Realized Value) is an on-chain metric that helps assess the valuation of cryptocurrencies. This straightforward yet effective tool indicates whether a cryptocurrency is currently overvalued or undervalued.
Over the past three months, the MVRV score for AVAX has climbed from 0.61 to 0.77. At this level, it suggests that the altcoin is relatively inexpensive. Historically, a higher MVRV score has correlated with increased AVAX price gains.
For instance, during the 2021 bull market, AVAX soared from a low of $5 to an all-time high of $146. During that time, the MVRV score saw significant growth, rising from 0.64 to 1.27. This indicated that the AVAX price has the potential to rise further and reach its true value.
Technical Analysis Of AVAX Price Highlights Bearish Trend, Can It Flip
The AVAX crypto price is currently in a bearish trend, with its price action falling below the 20-day, 50-day, and 200-day EMA bands. The trend is further confirmed by the MACD showing negative values below the zero line.
At present, the AVAX price is trading near a support zone and the lower support line of its upward channel.
The price is nearing the oversold territory, with the RSI currently at 34.65, indicating bearish pressure. If the RSI climbs above the 50 level, it could signal a potential positive trend reversal.
For AVAX crypto price to recover, it will need to break above the 200-day EMA while also surpassing the 20-day and 50-day EMAs. Such a move could serve as a bullish signal.
However, a breach of the 200-day EMA would still require confirmation to build confidence, necessitating that the price remains above this level to support further upward movement.
Analyst Highlights Best Possible Breakout Conditions
An analyst known as Ak47 on X (formerly Twitter) believes that AVAX’s consolidation around $24 may be setting the stage for an upcoming upward movement.
He identifies $28 as a critical resistance level. If the price surpasses this point, it could open the door for a potential rise toward $40 in the short term. Notably, $40 has been reached before, making it a logical take-profit target.
$AVAX is consolidating around $24 showing signs of a potential breakout
— Ak47♛ (@HolaItsAk47) November 2, 2024
A move above $28 could target $40 in the short term aligning with previous resistance levels ✍️ pic.twitter.com/c1GeLTHIBS
On the chart, Ak47 highlights the formation of a descending triangle pattern. A breakout to the upside would indicate a trend reversal.
If the AVAX price manages to hold above $24 and exhibits bullish behavior, breaking this pattern could drive prices toward Ak47’s target.
Conversely, if the price fails to breach the $28 resistance, it may lead to further consolidation or even a drop below the $24 level.
Traders and analysts should closely monitor volume spikes and shifts in the RSI, as these could indicate the direction of AVAX’s next significant move.
What Could Act as a Catalyst for a Significant Surge in AVAX Price?
Last month, AVAX became a hot topic online following the introduction of the Avalanche Card, a partnership with Visa aimed at simplifying cryptocurrency spending for holders. This development can enhance Avalanche’s reputation and market value over time.
As November 5th approaches, a significant day for both the United States and the cryptocurrency sector, the nation eagerly awaits the presidential election results. Analysts are speculating on how candidate sentiment might impact the market, potentially leading to substantial price movements depending on the outcome.
Moreover, the Avalanche Foundation is winning the support of crypto enthusiasts and investors through various community initiatives, including competitions. One upcoming event, the Grants Pitch Day, in collaboration with @iEx_ec, is set for Tuesday, November 12th, in Bangkok, Thailand.
— Avalanche Foundation 🔺 (@AvalancheFDN) November 2, 2024
During this event, members of the Avalanche Foundation will evaluate pitches from innovative Web3 projects seeking grant funding which is up to $500,000.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
