- Avalanche crypto price has pulled back by 28% from its highest point in December.
- This retreat is in line with other tokens like Solana and Polkadot.
- The volume of Avalanche NFT sales has jumped by over 168% in the past 30 days.
Avalanche (AVAX) price has pulled back in the past few weeks as last year’s momentum fades. The token, which soared to $50 in December, has retreated by more than 28% to $35. This retreat coincides with other pullbacks like that of Solana, Polkadot, and Cardano. It brings AVAX’s total market cap to more than $13.7 billion.
Why AVAX price retreated
Avalanche was one of the best-performing cryptocurrencies in 2023 as its token jumped from $8 in September to $50 in December. This 450% jump happened as Bitcoin and other coins like Ethereum and Solana soared.
Avalanche also jumped as its ecosystem performed well. Some of the top networks that did well during this time were Benqi, Aave, Trader Joe, GMX, and Stargate. In all, the total value locked (TVL) in the ecosystem jumped to over $858 million.
In addition, like other coins, Avalanche rose in anticipation of the spot Bitcoin ETF approval, which pushed BTC to its highest point in months. Most cryptocurrencies have a close correlation with Bitcoin.
Read more: How to buy Avalanche.
Avalanche price also jumped as some large financial services companies started to test its technology in key areas. Some of the companies that are either testing or using it as their Distributed Ledger Network (DLT) are Fidelity, JPMorgan, T.Rowe Price, Apollo, and Citigroup.
Meanwhile, demand for Avalanche NFTs has grown in the past few months. The most recent data by CryptoSlam shows that the volume of these NFTs jumped by over 168% in the past 30 days to more than $34 million. There were a total of 274k transactions from 10,576 buyers and 5,987b sellers. Some of the most notable Avalanche NFTs are Dokyo and CoqVsHunter.
Looking ahead, the next key catalyst for Avalanche and other cryptocurrencies will be the actions of the Federal Reserve and Bitcoin halving. There are signs that the ongoing crisis in the Middle East will have an impact on inflation, leading to higher rates for longer.
Avalanche price forecast
The daily chart shows that the AVAX price has retreated from $50 to $36 in the past few weeks as the recent momentum fades. Despite this pullback, Avalanche remains above the 50-day and 100-day Exponential Moving Averages (EMA), which is a positive sign. The price also remains steady above the 38.2% retracement point.
Therefore, the outlook for Avalanche is bullish, with the next immediate target being at $40 (23.6% retracement point. A move above $40 will see the coin jump to the next key point at $50.
