Posted: November 24, 2024

• AVAX surges 100% post breakout, with analysts eyeing $60.
• On-chain growth accelerated as AVAX hit $43.03, with support at $38.57 critical for December gains.

Avalanche [AVAX] has gained momentum, doubling its price after a critical breakout from its long-term macro downtrend.

As the market looks for signals of continued growth or a potential pullback, traders are closely watching key levels to determine the coin’s next move.

AVAX doubles in fortunes

Avalanche’s price has surged from approximately $21.56 to a recent high of $47.81 after successfully breaking above a macro downtrend line and retesting it as support.

The breakout was followed by strong bullish momentum, allowing the cryptocurrency to double in value within weeks.

The November monthly candle closed above a critical support level of $38.57, reinforcing buyer control at this price point. 

Analyst Rekt Capital has identified this level as a key area for maintaining bullish momentum, suggesting that holding above $38.57 into December could pave the way for further price gains.

Support at $38.57 and resistance at $47.81

Market participants are monitoring the $38.57 support level, which is viewed as a foundation for continued price growth.

The $43.18 and $47.81 resistance levels, however, presented challenges for buyers, with the latter aligning with historical price rejection zones.

If AVAX can sustain its position above $42.81 in the short term and clear $47.81, analysts believe that the next major upside target of $60 could come into play. 

This level holds psychological significance and reflects a continuation of the bullish trend seen in recent weeks.

On-chain metrics and DeFi activity

On-chain data showed a strong increase in user activity on the Avalanche network. Over the past seven days, new addresses have risen by 51.83%, while active addresses have grown by 24.69%. 

Additionally, zero-balance addresses saw a 21.57% increase, indicating rising adoption.

Avalanche’s Total Value Locked (TVL) has also seen a 9.09% rise over the past 24 hours, now standing at $1.443 billion, according to DeFiLlama.

Stablecoin market capitalization was $1.955 billion, and the platform recorded $75,998 in daily fees and revenue. 

This suggested increased ecosystem engagement alongside the price rally.

A pullback remains possible

Technical indicators, such as the Bollinger Bands, showed that AVAX was trading above the upper band, indicating heightened volatility and overbought conditions. 

A pullback toward the 20-day SMA at $32.70 could occur if bullish momentum slows.

Read Avalanche’s [AVAX] Price Prediction 2024–2025

The MACD confirmed positive momentum, with the MACD line diverging from the signal line and green histograms expanding. 

However, traders are cautious of overextension, as peaks in the histogram often precede short-term consolidations or corrections.