avalanche [AVAX] has been steadily recovering since the end of January. For example, it is up $37 in the past two months. This is the reason why investors hold their hopes, but the obstacle posed by the king’s currency can only be undone by investors.
Avalanche to zoom in soon
Down 5.85% from yesterday’s highs, AVAX was trading at $97.5 at the time of writing. Given that it has risen from $69 to where it is today in less than 20 days, it’s worth predicting a $100 breakout in a day or two.
While it may sound easy, it is important to note that the hyper bullishness observed in recent days is now cooling. This puts Avalanche in a tough spot thanks to its correlation with the king’s coin.
Sharing a correlation of 0.9 allowed AVAX to break out of its 3-month downward trend wedge and also test the critical resistance of $89 as support.
However, AVAX may not be able to enjoy these gains in the future as Bitcoin has been showing some consolidation for a few days now.
While BTC has reversed the losses it has faced since early 2022, it recently tested the 200-day SMA as resistance, and that is the concern.
Historically, every time BTC has tested it for resistance rather than support, price action has moved sideways or south over the next few days/weeks. This is also why BTC is currently struggling to hit $50k.
Should the same thing happen with AVAX, breaking the $100 level might get a little difficult.
Rather, countering the effects of the broader market is AVAX’s performance on the investor front.
The fourth largest DeFi chain in the world lost more than $1.5 billion at the end of March. However, it has since regained about 50% of the lost TVL thanks to growing positive investor sentiment.
Moreover, this bullishness is also verified by the rising AVAX Futures Open Interest (OI). The money flowing into the market recovered from the loss of $250 million in OI, increased the total OI by 136.9%.
This is proof that investors have been confident and active when it comes to investing in Avalanche.
Ergo, their belief in the altcoin could work wonders and help AVAX reach $100 soon.