After experiencing a downtrend over the past three months, the Avalanche community now anticipates a potential bullish reversal for AVAX, driven by ecosystem developments and increasing adoption. In a recent X post, trader Marzell told his 37.6k followers that AVAX was testing a key support zone between $15 and $20. He mentioned that if this support holds and AVAX closes the week above $30, it could see a strong rebound, potentially hitting $43.84. If it breaks past that, it might climb even higher to $58.06 and possibly $80.03, Marzell added. Meanwhile, well-known trader Kaleo shared a chart suggesting that AVAX was in an accumulation zone, forming a pattern similar to the one seen in November last year before it jumped 125%. He hinted that a similar rally could happen again, saying, “Something like this.” According to data from crypto.news, as of the afternoon of March 7 (Asian time), AVAX was trading at approximately $20.64, with a market capitalization exceeding $8.5 billion and a 24-hour trading volume of $538 million. The token remained 85.8% below its all-time high of $144.96, recorded on Nov. 23, 2021. Despite the significant downtrend over the past three months, with its price dropping nearly 61% from the $54.18 level reached on Dec. 9 last year, some developments could help support the altcoin’s recovery. You might also like: Is Trump’s crypto strategic reserve just a front to pump WLFI and his own bags? Multiple positive catalysts in play First, Avalanche CEO Emin Gün Sirer hinted that he could be attending the White House Crypto Summit later today, sparking speculation that AVAX could be included in the nation’s crypto strategic reserve plans . https://twitter.com/el33th4xor/status/1897752110940242277 With pro-crypto sentiment gaining traction among policymakers at the summit, investors are also betting that AVAX could benefit from potential government-backed initiatives—particularly as it aligns with Trump’s “Made in USA” narrative, given that New York-headquartered Ava Labs developed it. Second, the Avalanche community is gearing up to bring Balancer V3 to Avalanche. Once integrated, this latest version of the decentralized automated market maker will introduce advanced liquidity tools and new trading strategies to the Avalanche DeFi ecosystem. The proposal already put to vote will end on March 11, 2025. Third, Avalanche has been growing its presence in the real-world asset tokenization space. According to DeFiLlama, it is currently the 7th largest blockchain by DEX volume, which surged over 18% in the past week to nearly $1.345 billion. Recently, an Indian town adopted Avalanche’s blockchain to tokenize over 700k land records, showcasing its real-world utility, which has been well received by the Avalanche community. Meanwhile, Santiment data shows that AVAX’s weighted social sentiment has turned positive and has been climbing since the start of the week, a sign that community confidence is on the rise. AVAX price analysis However, at press time, multiple technical indicators were flashing bearish signals. On the 1-day/USDT chart, AVAX has fallen back under the descending trendline it has formed since Jan. 18, failing to break free from the bearish trend. AVAX price, MACD and Aroon chart — March 7 | Source: crypto.news The MACD and signal line continue to move closely together while remaining below the price level, a signal that AVAX is still going through a period of consolidation. Further, the Arron Up indicator at 78.5% and the Aroon Up at 0% confirm strong selling pressure, which signals a dominant downtrend. Hence, Avalanche ( AVAX ) is likely to continue its downtrend unless the current sentiment shifts. When writing, it was down 6.5% over the past day, exchanging hands at $20.5 per coin. Read more: Trump signs executive order establishing a US Strategic Bitcoin Reserve Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
