AVAX Bulls Eye $100 as Avalanche Consolidates Near $48 Resistance after 167% Rally

• AVAX shows strong upward momentum but must clear $48 resistance to aim for $100.
• Rising transaction volumes and decreasing zero-balance wallets signal growing confidence in AVAX.

The Ichimoku Cloud signals a bullish outlook for Avalanche (AVAX), with key support levels at $44.27 and $42.25 providing a strong foundation for upward momentum. However, the stochastic oscillator indicates overbought conditions, suggesting the possibility of short-term corrections before the upward rally continues.

As previously revealed by a CNF update, Avalanche (AVAX) has moved into the crypto top 10. At its current price of $45.28, AVAX has surged 167% since hitting its yearly low of $17.72 last August, fueled by increasing accumulation and a rising Accumulation/Distribution indicator.

At the time of writing, AVAX is priced at $47.74, having surged by 7.80% in the past day and 8.58% in the past week.

Surging Activity Drives Recovery

Transaction volumes have surged for AVAX, reaching $566 million in November before stabilizing at $250 million. This uptick has bolstered confidence in the token, lifting its price to $45 and stabilizing its position in the mid-$30s range. Active addresses, which peaked at 150K in March, have shown modest growth, reflecting renewed interest and gradual price recovery.

Additionally, a 5.52% decrease in zero-balance addresses over seven days indicates that funds are re-entering circulation, further supporting market confidence. However, AVAX faces hurdles, as highlighted in a recent tweet by John Morgan.

Avalanche holds $48 resistance, eyes $100 – But AVAX faces hurdleshttps://t.co/J5D4BHVyRB

— John Morgan (@johnmorganFL) December 1, 2024

Challenges and Opportunities Ahead:

Despite the bullish indicators, AVAX faces challenges. The overbought conditions suggest a potential pause or retracement in its current rally. However, the token’s strong support levels, increasing utility, and growing network activity present an optimistic outlook.

If AVAX overcomes the $48 resistance, it could solidify its upward trajectory, targeting new milestones like $100 in the near future.