Avalanche [AVAX] Rises 100% After Breakout: Can It Reach $60 Amid Market Uncertainty?

• Avalanche (AVAX) has experienced a remarkable surge of 100%, sparking interest from traders as it eyes significant milestones ahead.

• As on-chain metrics indicate robust network activity, analysts predict a potential target of $60 if support levels hold.

• “Holding above $38.57 could pave the way for significant price gains,” states analyst Rekt Capital, underlining the importance of this support level.

Avalanche (AVAX) surges 100% post breakout as analysts eye $60, with critical support at $38.57 and strong on-chain growth indicating sustained momentum.

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. This critical breakout has set the stage for vigorous bullish momentum, allowing the cryptocurrency to double its value in just a few weeks. The November monthly candle closed above the important support level of $38.57, reinforcing buyer control at this price point. With this level confirmed, analysts view it as essential for sustaining upward momentum in the coming months.

Support at $38.57 and resistance at $47.81

Market participants are carefully monitoring the $38.57 support level, which is crucial for further price appreciation. The resistance levels at $43.18 and $47.81 present significant challenges for buyers, particularly the $47.81 mark, which aligns with previously established rejection zones. If AVAX can manage to hold its position above $42.81 and clear the $47.81 resistance, analysts forecast a potential bullish rally towards the psychologically significant target of $60.

Source: X

On-chain metrics and DeFi activity

Recent on-chain data has revealed a dramatic increase in user activity across the Avalanche network, with new user addresses skyrocketing by 51.83% over the past week and active addresses seeing an uptick of 24.69%. Furthermore, zero-balance addresses have increased by 21.57%, hinting at rising adoption and engagement within the ecosystem.

Source: IntoTheBlock

A pullback remains possible

Despite the bullish price action, technical indicators, including the Bollinger Bands, suggest that AVAX is currently trading above the upper band, indicating potential overbought conditions and heightened volatility. There remains a real possibility of a pullback toward the 20-day Simple Moving Average (SMA) at $32.70 if the bullish momentum begins to wane.

Source: TradingView

Conclusion

As Avalanche (AVAX) continues to navigate its significant price movement, traders and investors should remain vigilant to key support levels, notably the critical $38.57 mark. Should this support hold, the bullish momentum could propel AVAX towards ambitious targets such as $60. However, the potential for a pullback exists, underscoring the importance of strategic trading decisions in this volatile market environment.