After liquidity began to flow from large-cap stocks to mid-cap stocks, the price of AVAX fell 12% in the past 24 hours, causing projects like PNUT and DOGE to surge by double-digit percentages. Nevertheless, market observers remain bullish on Avalanche, citing $130 as the bottom price. The high correlation between Ethereum (ETH) and Avalanche (AVAX) suggests that the latter may see a 660% breakout after ETH recently broke out of an 8-month downtrend channel. Can AVAX soar 5 times and reach $300?
Analyst's Bold Prediction: Why $130 is the Benchmark for AVAX Price
Crypto analyst Grronk predicts that the price of Avalanche will "return to $130 faster than you think." His prediction is based on analyzing AVAX's previous price history and noting that after a 27% drop around October 2023, Avalanche surged 479%.
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If history repeats itself, Grronk predicts that the price of AVAX could surge 500% to $130, which he calls the benchmark. The current price of AVAX is $32.06, and its trading volume has increased by 7% in the past 24 hours.
Avalanche Price Analysis: Could a 660% Surge Occur?
Avalanche price predictions indicate that the asset could surge 660%. First, Avalanche has a very high correlation with Ethereum, meaning that if ETH rises, this L1 crypto asset is also highly likely to rise. IntoTheBlock's data shows that AVAX's 60-day correlation with ETH is 0.84.
This correlation was observed when Ethereum's price recently broke out of an 8-month downtrend channel, and Avalanche closely followed suit. However, the Avalanche price is still within a downtrend channel and needs some additional momentum to break out.
Given the net inflows into the US spot Ethereum ETF, the price of ETH is likely to continue surging. Additionally, the overhead resistance for Ethereum is around $3,550 and $4,000, which may be stronger, meaning that as Ethereum breaks through these barriers, the price of AVAX may rise accordingly.
AVAX Price Short-Term Target at $65
As the Avalanche price surges, it may encounter resistance around $43.76. This is a strong barrier, and the price may struggle to break through. However, beyond this, the price could surge to the yearly high of $65 and then attempt to reclaim the all-time high of $147.
AVAX is a strong cryptocurrency with a solid fundamental. Currently, over $1 billion worth of AVAX tokens are at risk, and they may either profit or sink, depending on the direction of the crypto asset.
The price of AVAX may not start moving until Ethereum begins to move. Once the downtrend channel is broken, Avalanche could surge 660% to $306 quickly.
