- Avalanche price formed a hammer candlestick pattern this month.
- It has now surged by more than 30% from the lower side of the hammer.
- Technicals point to a 40% jump in the coming weeks.
Avalanche (AVAX) price has done well in the past few days as demand for the token and its blockchain rises. The AVAX token has jumped in the past four straight days and has moved to its highest point since January 18th. It has soared by more than 31% from its lowest point this month.
Avalanche price surge has coincided with that of Bitcoin, which has rebounded from $38,500 to almost $44,000. Other altcoins like Solana, Cronos, Tron, and Sui prices have also jumped in the past few days.
It has also coincided with the ongoing inflows into Avalanche’s DeFi ecosystem. Data by DeFi Llama shows that the Total Value Locked (TVL) in Avalanche has surged by more than 22% in the past seven days to over $875 million, making it the 6th biggest network in the world. Only Ethereum, Tron, BNB, Arbitrum, and Solana are bigger.
Notably, the amount of stablecoins in Avalanche has continued rising in the past few months. They now stand at more than $1.1 billion. This is notable since stablecoins are the currencies that power the blockchain industry. As such, a high stablecoin figure means that the network is getting more active.
Avalanche price forecast
Turning to the daily chart, we see that the AVAX price formed a hammer pattern on January 23rd. In price action analysis, this is one of the most bullish patterns in the market. And true to that, Avalanche has jumped sharply since the hammer formed.
Avalanche price has also jumped above the 38.2% Fibonacci Retracement level, which is a bullish sigm. Further, the coin has risen to the first support level of the Andrews Pitchfork tool, which is a positive sign.
Most importantly, AVAX price has crossed the 50-day Exponential Moving Average (EMA) and the Ichimoku cloud. Therefore, the outlook for the Avalanche price is bullish, with the next price to watch being the December high of $50, which is about 40% above the current level. A drop below the lower side of the hammer at $27.8 will invalidate the bullish view.
