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Avalanche (AVAX) Price Witnesses Strong Bullish Momentum

Avalanche (AVAX) Price Witnesses Strong Bullish Momentum
  • The bullish outlook is most evident after a significant price movement to above $150.
  • This linkage puts AVAX in the same danger as Bitcoin has since November 2021.

This week’s Avalanche (AVAX) market retracement has increased the likelihood that it will surge by another 100 percent in the second quarter. Since AVAX has created a multi-month bull flag formation, the bullish outlook is most evident after a significant price movement to above $150, an all-time high in the Avalanche market. Two parallel trend lines against the preceding trend show a downward sloping channel, and diminishing volumes are used to emphasize a deteriorating decline.

AVAX/USDT: Source: TradingView

Bulls Start to Dominate

As long as the underlying asset’s previous uptrend remains intact, a bull flag’s profit goal will be equivalent to the prior uptrend’s length when it breaks out above its upper trend lines.

A closing over the intermediate resistance of the 20-week exponential moving average (EMA) and a subsequent breakout above the flag’s upper trendline may increase AVAX’s price in the coming weeks. Thus, AVAX might see a rise of more than 100 percent from its current price of about $77 to $157. Avalanche’s recent surge in popularity is partly due to its high correlation with the Bitcoin price (BTC).

At the beginning of 2022, the correlation coefficient between AVAX and BTC was between 0.90 and 0.99, which is notable. But as of March 17, the reading has adjusted to roughly 0.79, highlighting Avalanche’s persistent preference for mimicking the movements of the benchmark coin.

This linkage puts AVAX in the same danger as Bitcoin has since November 2021, including the Federal Reserve’s quantitative tightening and the ongoing crisis between Ukraine and Russia. According to CoinMarketCap, the Avalanche price today is $80.50 USD with a 24-hour trading volume of $1,897,260,011 USD. Avalanche has been up 13.48% in the last 24 hours.

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