Avalanche (AVAX) is expected to see significant growth similar to the 2021 rally. The token is believed to be in a consolidation phase before a new bull market.
Current Price Dynamics of Avalanche
Avalanche's price rally in 2021 drew considerable attention as the token soared from a single-digit figure to $145. A similar run is expected to occur again as the token is believed to be in a consolidation phase. However, the current short-term trade setup does not favor a bull run, but long-term price action remains extremely bullish with the potential for a new all-time high (ATH).
Impact of New Investment Products
Grayscale Investments announced the creation and launch of Grayscale Avalanche Trust along with 20 other crypto investment products, including Solana, Litecoin, Stellar, Zcash, and Chainlink. Positive market sentiments have risen as AVAX price approached the interim resistance zone between $28.29 and $30 from lows below $20. However, the price is believed to be in a preparation period, likely followed by a massive upswing.
Near-Future Prospects
The long-term price action suggests the token is nearing the end of the accumulation phase. The Bollinger bands have begun to converge but do not signal an expansion indicating a breakout. Besides, the DMI levels are approaching each other for a bullish crossover, which may take more time. Therefore, AVAX price may continue maintaining an ascending consolidation and surpass the interim resistance zone. Considering the Fibonacci levels, a new ATH could be above $154 in early 2025 if AVAX exits the consolidation before the end of Q3 2024.
Based on the current dynamics and analysts' forecasts, Avalanche (AVAX) has the potential to achieve a new ATH in early 2025 if the current trend continues.
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