AVAX Price Prediction Indicates Strong Possibility of Surge to $22 Before Key Move

Key Insights:

• AVAX is likely to see a rise to $22 before a possible price correction to $9-$10.
• RSI signals a sharp price rally with AVAX in low regions similar to previous bottoms.
• DeFi sector activity sees AVAX token volume hit $328 million, reflecting growing market interest.

Avalanche (AVAX) has been showing significant price movements recently. As of the time of writing, the price stands at $14.38, with a 24-hour trading volume of $485 million. Despite a small drop of 1.96% over the past day, AVAX shows signs of a potential rise in the near future.

Price Movement Scenarios for AVAX

Two possible scenarios for AVAX’s price are currently being considered. According to Cryptosahintas, a rise to $22 could occur before a possible downturn. In the first scenario, known as the black arrow scenario, the price would temporarily rise to around $22 before declining to the $9-$10 range. This would indicate a bottom formation and possible stabilization.

In contrast, the second scenario suggests a different path. If the price breaks above its trendline and maintains this position, a more robust upward move could follow. The key factor in determining which scenario plays out is how the market reacts in the coming days.

Market Activity and RSI Levels

The current relative strength index (RSI) suggests that AVAX is at a low point, similar to previous market bottoms. “This situation could lead to a sharp reaction rally,” noted a market analyst. The bottom regions on the RSI signal a potential for a price bounce, which is why a rise to $21-$22 is seen as a strong possibility.

Despite these expectations, market conditions are still volatile, and the broader trends in cryptocurrency markets could influence AVAX’s movement. Any changes in Bitcoin’s dominance (BTC.D) could play a significant role in the price movement of AVAX, as it often affects altcoin performance.

DeFi Market and Token Liquidity

Meanwhile, the DeFi sector continues to see fluctuations in AVAX’s token volume and liquidity. As of the latest data from DeFiLlama, token volume reached $328 million, and token liquidity stood at $1.94 million. These figures show a volatile market, with sharp increases in token volume at certain points. This increased activity may suggest growing interest in decentralized finance platforms, which could support Avalanche’s price in the future.

The volume and liquidity movements reflect the dynamic nature of the market. As investor behavior continues to evolve, these fluctuations can play a role in determining the future direction of AVAX’s price.