Avalanche (AVAX) Breaks Through Key Resistance: $25 Target Within Reach

AVAX price reclaims key support and currently trades at $19.26 with strong weekly performance
Analysts predict bullish reversal with short-term target at $25 and stop-loss below $17.50
Developer activity surges after Etna upgrade, boosting Avalanches long-term growth prospects.

Avalanche (AVAX) is currently trading at $19.26, up 1.81% from the previous trading day. Although 24-hour trading volume dropped 12.23%, the token is up 7.47% in the last 7 days, indicating growing interest in the token.

Crypto analyst Andrew Griffiths points to a productive retest of the important support area with a possible upside move that can be sustained. The level, now serving as a strong base, offers an opportunity to make a rational entry with a good risk-reward structure.

AVAX technical analysis is calling for a range to the upside over $18.70, with a stop-loss in place under $17.50 and a short-term target of $25. He warns that traders need to be careful in the event of what he describes as calm before the storm conditions.

Meanwhile, the technical indicators are suggesting the possibility of a bottoming pattern following a six-month decline, as the Relative Strength Index (RSI) is in a neutral zone at 53. A breakout over the 20-day Simple Moving Average (SMA) at around $21.50 can be the start of a new bull run.

Bitwise Backs Bullish AVAX Outlook

In a surprising turn of events, Standard Chartered has published a five-year forecast for AVAX, predicting growth to $250 by 2029. These estimates translate to more than 1,200% from the current price levels. The bank anticipates that AVAX would surpass both Ethereum and Bitcoin in relative value, based on better ratios such as BTC-to-AVAX declining from 3,636 in 2025 to 2,000 in 2029.

Bitwises Ryan Rasmussen identified these forecasts, pointing to their potential to sway market sentiment. Standard Chartereds optimism is supported by Avalanches widening ecosystem, especially its competitiveness in the Ethereum Virtual Machine (EVM) chains. The banks experts offer that Avalanche can potentially be a top platform in the next cycle of the market.

Avalanches Lower Costs Drive Developer Interest

Avalanches technological advancement, particularly in the wake of the December 2024 Etna (Avalanche9000) upgrade, has been the key to its new traction. The upgrade reduced the price of subnets, now renamed to Layer 1 blockchains, from about $450,000 down to close to zero. This foundational development further reduced barriers to entry, resulting in the surge in developer activity by 40%.

Geoffrey Kendrick, the head of digital assets research at Standard Chartered, estimated that about 25% of active subnets are now Etna-compatible. A migration trend from Ethereum L2 solutions, he explained, had been toward Avalanche due to its EVM compatibility as well as a decrease in operational costs.

While Avalanches fees are still higher compared to some of Ethereums alternatives, its popularity in games and consumer apps sets the stage for broader adoption and market dominance.

Text source: TronWeekly

News