Avalanche (AVAX) Targets New Highs: Resumes Rally Toward $45 and Beyond

In a recent turn of events, Avalanche (AVAX) is once again eyeing the crucial $45.00 mark, with potential aims at $50.00. Following a correction below $45.00, the bulls demonstrated resilience above the $35.00 zone, sparking a renewed surge. The recent bullish momentum in Bitcoin, surpassing the $44,000 resistance, acted as a catalyst for altcoins, including AVAX.

Technical Analysis and Potential Upside

With a surge of over 10%, AVAX is trading comfortably above the 50-day simple moving average. Immediate resistance lies near $43.76, with a crucial hurdle at $45.00 and the 61.8% Fibonacci retracement level. A close above $45.00 could propel AVAX toward the $50.00 resistance, setting the stage for potential targets at $55.00 and $62.00. Further gains might open doors for a move toward the $80.00 resistance.

Fundamental Strength and Subnet Growth

Fundamentally, AVAX showcased steady subnet growth throughout 2023. With 20 to 34 subnets and 111 to 240 subnet validators, AVAX's ecosystem is expanding. The subnet/primary network validator ratio increased from 4.9% to 14.1%, underlining the network's resilience. Noteworthy developments such as Elastic and permissionless subnets, AWM/Teleporter, Firewood, and HyperSDK are anticipated to elevate Avalanche in 2024.

Potential Support and Caution

In case of a downside correction, AVAX may find support around $38.00, with a major support zone forming near $35.00. A significant bullish trend line around $35.00 on the daily chart adds to the potential support. However, failure to maintain support levels could lead to a more substantial correction, revisiting the 50-day simple moving average at $32.00 or even the $24.00 support.

Conclusion

AVAX's current bullish trajectory suggests a fresh upward move toward $45.00 and beyond. Traders are closely watching the crucial support levels and potential resistance zones, poised for further developments in AVAX's price action.