avalanche [AVAX] has been recovering steadily since the end of January. For example, it has managed to appreciate by $37 in the past two months. This is why investors remain hopeful, but the hurdle that the centerpiece presents can only be overcome by investors.
Avalanche to zoom soon
Down 5.85% from yesterday’s highs, AVAX, at press time, was trading at $97.5. Given that it fell from $69 to its current level in less than 20 days, it is worth expecting a breach of $100 within a day or two.
Now, while this may sound easy, it is important to note that the hyperrise seen over the past couple of days is cooling off. This puts Avalanche in a difficult position thanks to its correlation to the king’s piece.
Sharing a 0.9 correlation allowed AVAX to break out of its 3-month downtrend wedge and also test the critical resistance at $89 as support.
However, going forward, AVAX may not be able to take advantage of these rises since Bitcoin has been experiencing some consolidation for the past few days.
Although BTC has reversed losses incurred since the start of 2022, it recently tested the 200-day SMA as resistance, and that is the concern.
Historically, whenever BTC has tested it for resistance instead of support, the price action has moved sideways or south over the next few days/weeks. This is also why BTC is currently struggling to reach $50,000.
If the same thing happened with AVAX, it might become a bit difficult to break above the $100 level.
On the contrary, AVAX’s performance on the investors’ front counteracts the effects of market enlargement.
The world’s fourth largest DeFi chain lost over $1.5 billion towards the end of March. However, it has since regained around 50% of the TVL lost thanks to growing positive investor sentiment.
Moreover, this bullish trend is also verified by the inclined AVAX Futures (OI) open interest. Recovering from the $250 million loss in OI, the money that flooded into the market increased total OI by 136.9%.
This is proof that investors have been confident and active when it comes to investing in Avalanche.
Ergo, their belief in the altcoin could do wonders and help AVAX hit $100 soon.