Top 5 Reasons Avalanche Price is Eyeing a 65% Surge

The Avalanche price is in a strong bull run this year and is hovering at its highest point since January. AVAX has more catalysts that may push it up by 65% to its December high, including its strong technicals, upcoming ETF approval, and its growing DeFi total value locked.

Avalanche Price Technical Analysis

The daily timeframe chart shows that the Avalanche price bottomed at $14.68 in April and soared to a high of $35. It has formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. This pattern often leads to more gains.

The coin rose above the important resistance level at $27.30, it highest level in May and July. Soaring above that level invalidated the risky double-top pattern that was forming.

The AVAX price is about to flip the 50% Fibonacci Retracement level at $35 into support. Additionally, the Relative Strength Index (RSI) and the Average Directional Index (ADX) have continued to rise, indicating that momentum is sustained.

Therefore, the most likely scenario is where the coin continues rising, with the next important target to watch being at $56, up by 62% from the current level. A drop below the support at $27.30 will cancel the bullish forecast.

Avalanche DeFi Growth is Accelerating

The other main catalyst for the AVAX price is its growing role in the decentralized finance industry.

DeFi Llama data shows that the total value locked in the network has jumped to $3.45 billion, its highest level since 2022. This is a strong growth for a platform that started the year with about $2 billion in TVL.

The biggest players in the network are major players like Aave, which has over $1.04 billion in assets. Other top players like Benqi, Centrifuge, Euler, and Blackhole follow it.

In line with this, as the chart below shows, decentralized exchanges in Avalanche are processing substantial volumes this year. They have handled over $12.7 billion in volume this year, the highest level since 2022.

The volume has been on a strong upward trajectory after bottoming at $4 billion in June. All this explains why Avalanche transactions are soaring.

Growing Market Share in RWA

Meanwhile, Avalanche has become a major blockchain in the Real-world Asset (RWA) tokenization industry.

Data compiled by RWA shows that the network has over $456 million in RWA assets, a 356% monthly increase. This makes it the 7th biggest chain in the sector after Ethereum, ZkSync, Polygon, Aptos, Solana, and Stellar.

The biggest players in its RWA network are Circle, Tether, Centrifuge, and Avant Protocol. This growth will continue after Anthony Scaramucci launches his $300 million tokenized fund on the network.

AVAX Treasury Accumulation

Another bullish catalyst for the Avalanche price is the growing demand from companies. One of these companies is AVAX One, a Nasdaq-listed company that plans to accumulate AVAX tokens worth about $700 million. In a statement this week, the company named Scaramucci as a senior advisor

The Avalanche Foundation has also set a target of raising $1 billion to create an AVAX Treasury platform in a deal backed by Hivemind and Dragonfly Capital.

AVAX ETF Approval to Boost the Price

Meanwhile, the Avalanche price will likely benefit from the potential approval of AVAX ETFs by top companies like Bitwise, VanEck, and Grayscale.

There is a significant chance that the SEC will approve these funds since it has already approved the Ethereum ETF. Avalanche and Ethereum are similar chains in that they all provide a platform where developers can build decentralized applications (dApps) in all industries, like decentralized finance and gaming.

Avalanche price has rallied in the past few months and its strong technicals suggest that it has more upside in the coming weeks. It also has major fundamental catalysts that will likely push it to last November’s highest point, about 65% above the current level.