Avalanche (AVAX) Price Prediction: Will AVAX Soar to $1k as One Crypto Pro Predicts?

The Avalanche price has remained in a technical bear market after crashing by over 30% from its highest level in December.

Avalanche (AVAX) price has crashed by over 30% from its highest level in December, and it is now trading in a technical bear market. On Boxing Day, other cryptocurrencies also plunged, causing AVAX to crash to $36. It has since dropped to $37.60, bringing its market cap to about $15.38 billion.

Despite some positive news in the Avalanche ecosystem, such as the recent launch of $250 million from a group of investors led by Galaxy Digital, the token price has suffered. This fundraising round now puts the company at over $3.2 billion in its treasury, making it one of the richest networks in the crypto industry.

Moreover, some encouraging metrics for Avalanche include 416 DeFi dApps in its ecosystem, with a total value locked (TVL) of over $1.3 billion, $4.6 billion in bridged TVL, and $2.3 billion in stablecoin volume, according to DeFi Llama data.

We can see that Avalanche has a chance for moving in par with Solana if we take into account the recent investment and network strength. Because of its strength in meme coins, Solana has become the second-biggest chain in the industry.

On-chain data shows that the network is making some slight improvement. The active addresses ratio for Avalanche has increased to 0.62%, up from a low of 0.54% this month. This number looks at the ratio active addresses with those with balances.

Active addresses have risen to over 58,000, while new addresses jumped to almost 15,000, according to more data. These numbers are still lower than earlier this month, but the trend is improving.

Another notable Avalanche data is its MVRV indicator, which is among the most popular tools in the crypto market. The MVRV indicator has pointed upwards and is currently at 1.1, according to IntoTheBlock. A figure below 3.8 usually indicates that a crypto asset is cheap, hence AVAX is fairly undervalued.

The daily chart shows that the AVAX price formed a double-top pattern at $55.90 and whose neckline was at $40.95. A double-top is a popular bearish chart pattern in trading.

Avalanche has dropped below the 50-day moving average, forming a bearish flag chart pattern consisting of a vertical line and a rectangle. It has also dropped below the Ichimoku cloud indicator.

Therefore, the coin will likely resume the downward trend since it has already formed a break and retest pattern, a popular continuation sign. It did that by retesting the double top’s neckline at $40.95.

While Avalanche has some good fundamentals, technicals suggest that it will resume the downtrend and possibly move to $25.