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AVAX price prediction: buy-wave in crypto sets $100 in sights

  • Avalanche price action is taking a breather after an extensive two-day rally on renewed interest in cryptocurrencies.
  • AVAX sees upside potential as the price cap is being tested yet again.
  • Expect to see a break above the cap trend line and bulls getting rid of the downtrend.

Avalanche (AVAX) price action has been in a sharp uptrend this week as a wave of new interest pushed cryptocurrencies higher. With the massive number of sanctions limiting means of payment in Russia, locals are increasingly buying into cryptocurrencies as an alternative means of payment for goods. The renewed interest in cryptocurrencies, in a very risk-off environment, has resulted in Avalanche bulls starting an uptrend that could break the downtrend since December 2021.

AVAX bulls are spurred to break the December downtrend

Avalanche bulls are seeing broad and significant interest in cryptocurrencies across the board as more stars are set to align in favour of them. Not only are current sanctions pushing Russian people into cryptocurrencies as an alternative means of payment to avoid those sanctions, but central banks are signalling that they will start to limit their rate hikes in the near term. This is feeding the risk-on sentiment and has seen investors going long cryptocurrencies across the board. 

Expect AVAX to take a breather first, with $90.00 proving a challenging level to break as the red descending trend line and this significant figure are a big hurdle. But with pressure mounting from below, expect to see a big pop once $90.00 breaks. A solid 15% rally could present itself and touch $100.00 and the monthly R1 resistance level, with the move breaking the downtrend that has been present since December.

AVAX/USD daily chart

AVAX/USD daily chart

With pressure still mounting and more reports of troops surrounding Kyiv, this could further escalate and put global markets on the back foot. Expect to see investors flee cryptocurrencies yet again and price action in AVAX to fall back to $70.00 or $66.47 at the monthly S1 support level. A further break lower could see a nosedive move towards $50.92 in a situation in which  rumours circulated of nuclear weapons being deployed.


 

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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