Avalanche (AVAX) Could Hit $40 on Bullish Signs

Avalanche (AVAX) has remained in the $30-$39 price range for weeks. After rallying above $60 in March, AVAX dipped to the $35 region and has since struggled to break the $40 resistance. However, recent bullish patterns indicate a possible surge to reclaim the $40 level.

AVAX currently trades at $36.91, up around 6% in the past 24 hours. It has gained nearly 8% over the last 30 days. A recovery in the broader crypto market sentiment could propel AVAX to retest its $60.69 March high.

What's Driving Avalanche's Price?

The overall crypto market momentum often impacts the prices of altcoins like AVAX. Bitcoin's push above $66,000 recently has helped boost buying pressure on Ethereum and other major altcoins.

Ecosystem developments are also aiding AVAX's ascent. Avalanche will assist in managing tokenized U.S. Treasuries on Ethereum, increasing its popularity. Avalanche's new $1 million liquidity mining program called Memecoin Rush aims to attract more meme coin activity.

AVAX Price Outlook

Based on these tailwinds, analysts predict AVAX could rally to the $40 level in the coming days if it can overcome the $39.02 resistance. Market analyst Omar sees AVAX breaking out of a major trendline, potentially triggering a 40% short-term rally.

Technically, AVAX is forming a bullish engulfing pattern on the daily chart as buyers return. It has found support at $34.04 and is testing the $37.70 resistance. A breakout could quickly push AVAX to $40. The RSI indicator rising into bullish territory also supports more upside.

However, over 28% of the circulating AVAX supply is held by short-term investors who could sell into a rally. A large demand barrier also exists around $38 where over 12 million AVAX were purchased.

Overall, while bullish momentum is building, AVAX may face further consolidation if sellers continue limiting major breakouts. A decisive move above $39 is needed to spark the next rally toward $40 and higher.