AVAX could be soaring to new highs according to analysts as several bullish developments and a historical pattern position the token for strong gains.
The sentiment in the crypto market has flipped bullish as Republicans secured a historic win, putting an end to what many claim to be the last anti-crypto administration in the White House.
With the development acting as a catalyst, Bitcoin printed back-to-back highs breathing new life into the altcoin market as well.
Avalanche is no exception, as multiple analysts see the potential for a breakout, driven by favorable market conditions and the resurgence of investor confidence across the crypto sector.
History points to the upcoming rally
According to charts shared by analyst Fabioviriba, AVAX’s recent price action is quite similar to what was witnessed before the altcoin’s 2021 rally where it surged roughly 4800% from $3 to its all-time high of $147.
During the previous rally, AVAX traded within an extended accumulation period followed by a strong upswing, which then entered a corrective phase, ultimately setting up the foundation for its massive rally.
This time, on the daily chart, AVAX has been in an extended accumulation phase since July 2023 and is now nearing the end of its corrective phase.
According to the analyst, a breakout here could propel the token’s price as high as $347, provided bulls successfully reclaim the crucial $30 level.
The path to $30 is clear according to fellow analyst Kaleo who noted that the altcoin had reclaimed a key support level at $26.50.
In a similar vein, crypto trader Senior Crypto observed that AVAX had formed a triple bottom pattern on the AVAX/BTC chart, which signals a potential bullish reversal and strengthens the case for further upside beyond the $30 mark.
Bullish case for Avalanche
With the majority of AVAX holders expecting a rally soon, several bullish ecosystem developments alongside the optimistic technical analysis are also setting a solid stage for Avalanche’s growth.
For instance, the Avalanche Foundation recently completed the repurchase of 1.97 million AVAX from the now-defunct Luna Foundation Guard, established to act as a buffer for Terra’s TerraUSD stablecoin.
The foundation purchased these tokens for $45.5 million, while the stash was worth roughly $53 million at current prices, allowing it to save nearly $12 million.
The firm now plans to use these funds to strengthen its initiatives like grants, events, and incubators
Meanwhile, reports have surfaced that Real-world asset (RWA) tokenization platform Securitize, in partnership with BlackRock could be launching its BUIDL tokenized fund on the Avalanche network.
Per on-chain data shared by market commentator CryptoNoddy on X, the contract for the BUIDL fund has been deployed and funded on Avalanche, fueling speculation about an upcoming launch.
While this remains unconfirmed, the possibility of BlackRock’s involvement in Avalanche has stirred bullish sentiment.
Just last month, ParaFi Capital, a digital asset management firm, chose Avalanche to tokenize a slice of its $1.2 billion fund.
Avalanche is also home to other big names in tokenized funds, including Franklin Templeton, OpenEden, and Backed Finance.
With such heavyweights on board, many believe Avalanche is positioning itself as the go-to platform for tokenised RWA funds, adding to the bullish narrative.
Avalanche also recently teamed up with payments giant Visa to launch a new card that lets users spend their cryptocurrencies—such as Circle’s USD Coin (USDC), Wrapped AVAX (WAVAX), and BENQI’s Liquid Staked AVAX (sAVAX)—anywhere Visa is accepted.
On top of this, Avalanche is also set to launch its largest network upgrade dubbed Avalanche9000, which aims to make launching Layer 1 blockchains more economically feasible, while also improving the scalability of the network.
These developments place Avalanche in a strong position, hinting at the potential for a breakout as it nears the $30 level. At press time, AVAX was exchanging hands at $26.81, up 1.8% over the past 24 hours.