Avalanche (AVAX) Price Doubles in 1 Month —What’s Behind this $10B Rally? 

Insights:

• Avalanche (AVAX) price hit $41 on Tuesday, Dec 12, bringing its gains over the last 30 days to a staggering 120%. 
• The Total Value Locked on the Avalanche ecosystem has grown by $634 million while the AVAX coin added $10 billion to its market cap since Nov 13. 
• Avalanche’s growth over the past month is largely attributed to its strategic focus on two key burgeoning blockchain narratives ahead of 2024. 

Avalanche (AVAX) price continues to soar, despite the bearish tailwinds surrounding the cryptocurrency markets ahead of the upcoming FOMC meeting. On-chain data analysis unpacks the critical narratives that have driven AVAX price in the past month, and the key resistance areas to look out for in the days ahead. 

Avalanche Price on the Rise Despite Market Correction

Avalanche (AVAX) continues its impressive rally this week. This remarkable 30-day performance has sent the altcoin’s price soaring 120% from $16 to $41.

 Notably, Avalanche’s bullish momentum remains resilient despite other top coins like Bitcoin (BTC), Ethereum (ETH) plunging into the red ahead of the US Fed rate decision slated for Dec 13. 

What’s Driving the Avalanche Price Rally?

Avalanche’s price rally and ecosystem growth over the past month is largely attributed to its strategic focus on two key blockchain narratives; real-world assets (RWAs) and GameFi, ahead of 2024. 

Avalanche recently announced strategic partnerships with TradFi banking giants, including JPMorgan Chase and CitiBank. Both institutions are set to leverage Avalanche and its blockchain subnets to develop RWA projects. 

Additionally, the Avalanche Foundation has also initiated Avalanche Vista, a $50 million fund dedicated to RWA research and development.

Importantly, earlier this year, Bernstein, a prominent private wealth management firm, predicted $3 trillion worth of assets will be tokenized within the next five years. It’s only logical that investors have been betting big on AVAX in recent weeks, in a bid to front-run the potential gains from the RWA wave.

Between Novmeber 11 and December 12, the total value locked (TVL) on the Avalanche Ecosystem has increased from $573.36 to $936.48 million. 

Avalanche now appears to be at the forefront to capture this RWA market.  This $363 million growth in Avalanche TVL, largely explains why the AVAX coin added $10 billion to its market cap in the last 30 days.

Apart from RWA, Avalanche has also strategically positioned itself as the largest blockchain focused on the GameFi sector.

This architecture enables game developers to create highly scalable and bespoke blockchains, attracting top gaming studios to build on the Avalanche blockchain.

With the global gaming market expected to reach a $1.4 trillion valuation by 2030, Avalanche’s subnet architecture is a key differentiator. 

AVAX Price Forecast: Can it Reach $50? 

Avalanche (AVAX) price is to reach $50 based on key on-chain indicators like growing network usage and rising TVL. These metrics could hit new peaks as the Real-World Assets (RWA), GameFi sectors are expected to emerge among the leading blockchain investment narratives in 2024.

From a technical analysis perspective, the 50-day and 200-day Simple Moving Average price trends also show that the much-coveted Golden Cross phenomenon is now fully in play for AVAX price, confirming the strengthening bullish momentum. 

The Golden Cross is a bullish technical analysis pattern that occurs when a short-term moving average (e.g., 50-day) crosses above a long-term moving average (e.g., 200-day). Put concisely,  it signals that current traders are now willing to pay more for the AVAX coins than in previous weeks.. 

The chart below shows that Avalanche’s 50-day SMA Price is now at $19.3, which is significantly higher than the 200-day average of $13.48.

If the bulls capitalize on this positive momentum, they will likely drive AVAX price toward the $50 territory in the weeks ahead. 

However, the $45 could form a major resistance zone. The TerraUST crash back in May 2022 had formed a critical red candle, at that area. 

Considering, that investors who bought AVAX during that period have been holding the bag for about 18-months, many of them could look to exit once the price approaches their break even point again.  That selling pressure could force a price correction. 

But if bullish impact of the Avalanche’s soaring TVL intensifies, as observed in December so far, the bulls could garner enough momentum to smash through that $45 resistance zone, and reclaim $50.