Avalanche price has staged a significant recovery in the past week in the wake of Bitcoin’s impressive rally. The digital asset has gained nearly 16% over the last week and more than 22% in the year to date. Despite its recent gains, AVAX is still struggling to recover from losses it made over the past month, as it remains 8.72% lower over the period.
Fundamental Analysis
Avalanche price has been rallying for the past few days amid bullish sentiment in the cryptocurrency market. Data by Coinmarketcap shows that the global crypto has increased by 1.63% over the past 24 hours to $1.19 trillion, while the total crypto market volume slipped by 4%. Bitcoin’s dominance has increased to 50%, its highest level since the start of the year.
The crypto market has been on a strong bullish trajectory for the past few days despite the regulatory crackdown on cryptocurrencies and macroeconomic uncertainties. Bitcoin’s break above the critical resistance of $30,000 has also buoyed the positive sentiment in the crypto industry. At the time of writing, Bitcoin price was trading at $30,699.
Investors are closely monitoring comments by global central banks this week ahead of the US and UK Gross Domestic Product (GDP) data for Q1 later in the week. Markets are anticipating a decline in the US economic growth, forecasting a dip to 1.4%, down from 2.6%. UK’s quarterly GDP is expected to remain unchanged, while the yearly economic growth slips to 0.2%.
Investors are anticipating comments by the Federal Reserve Chairman, Jerome Powell, later in the week, looking for fresh hints about the Fed interest rate path. Wall Street scrutinized June’s consumer confidence report, that showed a surprising increase for the month.
The Conference Board Consumer Confidence Index rose to 109.7 in June, up from 102.5 in May and its highest level since January 2022. The Expectations Index, which measures consumer’s short-term outlook for business, income, and labor market conditions rose to 79.3, a shade below 80- the level associated with a recession in the next year. Focus will now be on the personal consumer expenditure (PCE) index report set to be released on Friday.
Avalanche Price Technical Analysis
The daily chart shows that the Avalanche price has been on a strong upward trajectory for the past few weeks. Even so, the digital currency has failed to move above the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages. The altcoin has also failed to break the major hurdle at $15.
However, its Relative Strength Index (RSI) has moved higher into the neutral zone, with the Moving Average Convergence Divergence (MACD) indicator hinting at a bullish trend. Its Momentum indicator is also bullish.
Therefore, I expect the Avalanche price to continue rising in the immediate term as buyers target the next resistance level at $15. A move past the aforementioned level might be enough to sustain the bullish trend. Conversely, a move below the support level of $12.60 will invalidate the bullish thesis.
AVAX Price Chart
