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Avalanche (AVAX) price has gone against the tide this week, staying on the upward trajectory as the rest of the market slumped. The resilience is attributed to the recent Avalanche9000 testnet, the largest upgrade since the mainnet launch. With gains of 25%in the last week, a move to $50 in the near term doesn’t seem overly ambitious.
AVAX Price Eyes $50 After Avalanche9000 Testnet Upgrade
The recent strength displayed by AVAX price could be attributed to the recent upgrade to the testnet. The Avalanche development team conducted an upgrade on the Avalanche testnet blockchain on Monday, increasing scalability, improving security, transaction speeds, and lowering transaction costs. Notable improvements include updated SDKs and enhanced APIs, which will make it easier for developers to create and deploy dApps.
These factors are likely to attract more developers to the platform and enhance its competitiveness in dApp deployment as well as DeFi and NFT sectors. Also, the Avalanche Foundation says the upgrade enables users to create customized blockchains and hopes to bring Avalanche9000 to the mainnet by yearend.
These improvements will help spur up the utility and value of AVAX, supported by other growth drivers like increased social media engagement and and stable trading volume.
An Uptick In Telegram User Numbers Favours AVAX Price
According to data aggregation site, IntoTheBlock, AVAX has seen the number of its Telegram members rise by 0.7% in the last seven days to 37,725. This is significant because the crypto market has been heading downward in recent days, with social media sentiment becoming less upbeat. Therefore, a contrarian trajectory augurs well for AVAX price.
AVAX Price Analysis: Short-term action toward $45 and pathway to $50
AVAX price has been trending higher while its trading volume slumps, but considering Bitcoin’s recovery, the altcoin could continue climbing higher. This bullish Avalanche price prediction is supported by the uptick in the Money Flow Index (MFI), which reads 59. Positive money flow signals increased demand for an asset. The upward momentum will likely meet initial resistance at $44.05, but extended bullish control could breach that barrier and propel Avalanche price toward $50.
AVAX/USDT 1-day chart
Conversely, the trading volume has shown signs of exhaustion, signaling a potential upward momentum weakening. Moving below $42.80 could favor the bears to take control. In that case, initial support will likely be at the previous accumulation level of around $41.45.
A break below that mark will strengthen the downside momentum and invalidate the upside thesis. If that happens, the resulting momentum could move the next target to $40.00, a psychological support just above the double-bottom pattern.
Frequently Asked Questions (FAQs)
The recent upgrade to the Avalanche testnet, known as Avalanche9000, is attributed to the resilience of AVAX price, which has gained 25% in the last week.
The upgrade increases scalability, improves security, enhances transaction speeds, and lowers transaction costs, making it easier for developers to create and deploy dApps.
According to the analysis, AVAX price is expected to meet initial resistance at $44.05, but extended bullish control could breach that barrier and test $45.60, with a potential move to $50 in the near term.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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