- AVAX is up 7.47% in a week, potentially hitting $25.
- AVAX could reach $250 by 2029, surpassing Ethereum and Bitcoin.
- The Etna refresh reduces costs, increasing developer activity and competitiveness.
Avalanche (AVAX) is up 1.81% daily, trading at $19.26. Although its 24-hour trading volume declined by 12.23% from last week, the token recorded a 7.47% increase, suggesting growing interest among investors.
Crypto analyst Andrew Griffiths says a test of that support zone was successful and there is the possibility of continued upward movement. It has also established this level as a solid foundation for traders to get in on this level, as it is now a favorable entry point with favorable risk-to-reward.
Given that AVAX technical analysis is bullish, the price should stay above $18.70. A short-term price objective has been suggested below $17.50, and a stop loss will be indicated below $17.50. But Griffiths warns traders to keep an ear out for a “calm before the storm” that could usher in sudden volatility.
Momentum indicators are also in the process of a possible trend reversal. The Relative Strength Index (RSI) reading of 53 signals neutrality after six months of downtrend. AVAX has the potential to see a fresh bullish phase if it breaks out above the 20-day Simple Moving Average (SMA) near $21.50.
Avalanche’s Ecosystem Growth Fuels Bullish Outlook
Standard Chartered has made a significant and noteworthy step forward when it released a long-term forecast for Avalanche. The forecast suggests that Avalanche will grow to $250 by 2029, an increase of more than 1,200% from current price levels. According to the report, AVAX could overtake Ethereum and Bitcoin in terms of relative value, and the BTC-to-AVAX ratio is projected to plummet to 2,000 from 3,636 in 2029.
However, Ryan Rasmussen from Bitwise stressed the importance of these forecasts and added that they could significantly change market sentiment. Avalanche’s expanding ecosystem and its growing competitiveness among Ethereum Virtual Machine (EVM) comparable chains give basis to Standard Chartered’s bullish view. Analysts at the bank think that Avalanche is one of the leading blockchain platforms that could emerge as a leading platform in the upcoming market cycle.
Avalanche Subnets Now 25% Active, Growing
A significant reason for Avalanche’s increase in momentum is its December 2024 Etna (Avalanche9000) refresh, which has sparked technological advancements. The update cut the cost of starting subnets (i.e., Layer 1 blockchains) from nearly $450,000 to almost zero. Barriers to entry have been significantly reduced, and developers have engaged in more than 40% of them.
According to Geoffrey Kendrick, Head of Digital Assets Research at Standard Chartered, around 25 percent of active subnets are now Etna compatible. According to him, he has seen a clear migration trend toward the Avalanche base from Ethereum Layer 2 solutions, as it is due to Avalanche’s EVM compatibility and with lower operational costs than Ethereum.
Avalanche’s transaction fees are higher than those of other Ethereum alternatives. Still, due to its growing adoption in gaming and consumer-facing applications, AVAX is poised to do reasonably well, gain more traction, and eventually become the market leader.
