AVAX Price Prediction: Can Avalanche (AVAX) Price Hit $25?

Avalanche news is making headlines again as AVAX price recently reclaimed a critical support level, now trading around $19.59.

Avalanche (AVAX) news fills the airwaves as the cryptocurrency reclaims a key support zone. Analysts expect a short-term price target of $25.

Avalanche price has shown robust gains, rising 7.47% over the past week. This follows a major protocol upgrade that slashed subnet deployment costs. The move has sparked a 40% surge in developer activity.

Analysts are closely watching the recent price movement as a productive retest of a key support zone. This could lay the foundation for a continued AVAX price surge.

Relative Strength Index is in neutral territory at 53. A breakout over the 20-day Simple Moving Average is also closely watched as it could suggest a new bull phase.

This moment presents an opportunity for investors to engage, especially with stop-loss guidance placed below $17.50 to mitigate risk.

Are AVAX Technicals Pointing to $25?

Technical analysis continues to fuel optimism over Avalanche’s short-term prospects. At $19.59, the Avalanche price is comfortably above the previously contested $18.70 support zone.

Analyst Andrew Griffiths notes that this $18.70 level now acts as a firm floor, with a well-structured risk-reward setup targeting $25.

Analyst Andrew Griffiths is closely tracking the performance of Avalanche (AVAX) and has identified a key support zone that could determine the cryptocurrency’s near-term price direction.

According to the analysis shared on X, the $18.70 support is crucial as it represents a previous resistance level that has now been broken.

“Now, as we observe the price action closely, we can see a natural rebound from the support at $18.70, forming the lower boundary of the support zone. This is a positive technical development as it suggests that buyers are stepping in to prevent further declines.”

As we move up from the support zone, we encounter the 20-day Simple Moving Average (SMA) at $21.50. A breakout above this SMA could be pivotal in signaling a broader upward trend.

If this breakout occurs, it could trigger a wave of buying pressure, paving the way toward the $25 target in the short term.

Is Developer Boom Fueling the Next Bull Run?

Recent AVAX news highlights the December 2024 Etna upgrade as a turning point. This upgrade slashed the cost of deploying subnets (Layer 1 blockchains) from around $450,000 to virtually zero.

This dramatic cost reduction has led to a 40% surge in developer activity, signaling confidence and innovation within the Avalanche ecosystem.

Renewed developer interest plays a crucial role in increasing the platform’s long-term value proposition. Enhanced EVM compatibility and lower operational costs have pushed projects away from Ethereum Layer 2 networks, setting the stage for broader adoption.

These structural improvements bode well for the bullish outlook on Avalanche price beyond speculative gains.

What’s the Short-Term Outlook for AVAX Price

Standard Chartered has made a bold prediction, projecting the Avalanche price to reach $250 by 2029. This represents an increase of over 1,200% from current levels.

The bank anticipates that AVAX will outperform both ETH and BTC in terms of relative value. Their analysis focuses on improving ratios, such as the BTC-to-AVAX ratio, which they expect to drop significantly over the next five years.

However, Bitwise’s Ryan Rasmussen cautions that while institutional investors are becoming more interested in cryptocurrencies, there’s still a long way to go.

“It’s still a small part of most institutional portfolios. We’re starting to see some of the larger allocators, endowments, and pensions get more involved, but it’s a gradual process.”

This factor could influence the speed at which crypto prices rise. Nevertheless, Rasmussen remains optimistic, noting that crypto is quickly gaining recognition.

“We’re seeing more and more institutional products being developed, and we’re seeing institutions get more comfortable with the terminology and concepts related to crypto.”

This focus on Avalanche in the EVM ecosystem bodes well for a optimistic outlook. The platform also holds a strategic edge in gaming and consumer apps. Together, these suggest that the ambitious AVAX price prediction is backed by developments and positioning.