After two days of decline, Avalanche price was on a recovery path early on Thursday. AVAX registered a 24-hour gain of 4.37% to trade at $120.30 at 0615 GMT.
Avalanche has been going against the grain over the past two weeks, registering substantial gains when the larger crypto market is in a correction. It set a new all-time high price of $144.96 four days ago, but two successive days of decline triggered concerns of possible reversal. However, the return to the positive territory today signals that AVAX could still be having more fuel in the tank to propel further gains.
Why is Avalanche soaring?
Avalanche’s recent rise is down to three main reasons. First, the platform launched a bridge that is fully compatible with Ethereum network, which will facilitate easy transfer of projects from Ethereum. Secondly, the combination of low transaction charges and smart contract capabilities endear Avalanche to many investors. Thirdly, Avalanche has developed strong partnerships with key institutions. The latest partnership is the much-discussed partnership with Deloitte, geared towards minimizing the cost of disaster relief.
Technical analysis for Avalanche price
The market momentum for Avalanche price action remains strong, with the RSI at 63. AVAX still remains on an ascending channel as shown on the chart below. This is likely to propel the price higher in the near term. The price is currently at $120 and the near-term support is likely to be at $108.16. However, based on the current momentum, upward action looks more likely.
If the bulls sustain the current buying momentum, the price is likely to rise to the first resistance at $129.39. If it breaches that mark, the next resistance could come at $135.03. Beyond that point, AVAX could retest the all-time high price.
