AVAX Price Prediction: MVRV Score Signals Undervaluation, Can Bulls Reclaim the Market?

Market sentiment and Avalanche (AVAX) price action have historically been crucial to its performance. Recently, the overall sentiment in the crypto market has been quite negative.

The price of cryptocurrency Avalanche (CRYPTO: AVAX) has historically been influenced by market sentiment and technical indicators. Recently, the broader crypto market has experienced negative sentiment, impacting AVAX’s performance. However, as the token approaches a crucial support level, it might be poised for a rally.

Investors in the altcoin sector are paying close attention to the broader crypto market's interesting price movements. Currently, AVAX crypto is hovering near its support zone at $23.32, fluctuating around this price point.

According to analysts, a breakout above $28 could generate significant buying momentum. Despite the asset’s inherent volatility, experts suggest that if the price surpasses the $28 mark, it could potentially soar to $40 in the short term. It might also reach $65 over the long term.

Continue reading for more valuable insights on the Avalanche price.

According to data from Santiment, the MVRV (Market Value to Realized Value) score for AVAX has been on the rise since August 2024, reaching 0.77 points. At this level, it indicates that the altcoin is still relatively cheap. Historically, higher MVRV scores have coincided with greater AVAX price gains.

For instance, during the 2021 bull market, AVAX surged from a low of $5 to an all-time high of $146. During that time, the MVRV score also saw a significant increase, moving from 0.64 to 1.27. This signaled that the AVAX price had more room to rise and reach its true value.

Technical Analysis Of AVAX Price Highlights Bearish Trend, Can It Flip

The AVAX crypto price is currently in a bearish trend, with its price action falling below the 20-day, 50-day, and 200-day EMA bands. The trend is further confirmed by the MACD showing negative values below the zero line.

At present, the AVAX price is trading near a support zone and the lower support line of its upward channel.

The price is nearing the oversold territory, with the RSI currently at 34.65, indicating bearish pressure. If the RSI climbs above the 50 level, it could signal a potential positive trend reversal.

For AVAX crypto price to recover, it will need to break above the 200-day EMA while also surpassing the 20-day and 50-day EMAs. Such a move could serve as a bullish signal.

However, a breach of the 200-day EMA would still require confirmation to build confidence, necessitating that the price remains above this level to support further upward movement.

Analyst Highlights Best Possible Breakout Conditions

An analyst known as Ak47 on X (formerly Twitter) believes that AVAX’s consolidation around $24 may be setting the stage for an upcoming upward move.

He identifies $28 as a critical resistance level. If the price surpasses this point, it could open the door for a potential rise toward $40 in the short term. Notably, $40 has been reached before, making it a logical take-profit target.

$AVAX is consolidating around $24 showing signs of a potential breakoutA move above $28 could target $40 in the short term aligning with previous resistance levels ✍️ pic.twitter.com/c1GeLTHIBS

On the chart, Ak47 highlights the formation of a descending triangle pattern. A breakout to the upside would indicate a trend reversal.

If the AVAX price manages to hold above $24 and exhibits bullish behavior, breaking this pattern could drive prices toward Ak47’s target.

Conversely, if the price fails to breach the $28 resistance, it may lead to further consolidation or even a drop below the $24 level.

Traders and analysts should closely monitor volume spikes and shifts in the RSI, as these could indicate the direction of AVAX’s next significant move.

What Could Act as a Catalyst for a Significant Surge in AVAX Price?

Last month, AVAX became a hot topic online following the introduction of the Avalanche Card, a partnership with Visa aimed at simplifying cryptocurrency spending for holders. This development can enhance Avalanche’s reputation and market value over time.

As November 5th approaches, a significant day for both the United States and the cryptocurrency sector, the nation eagerly awaits the presidential election results. Analysts are speculating on how candidate sentiment might impact the market, potentially leading to substantial price movements depending on the outcome.

Moreover, the Avalanche Foundation is winning the support of crypto enthusiasts and investors through various community initiatives, including competitions. One upcoming event, the Grants Pitch Day, in collaboration with @iEx_ec, is set for Tuesday, November 12th, in Bangkok, Thailand.

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