Avalanche (AVAX) price has surged 6% past $40 ahead of the Durango upgrade. The altcoin is displaying a bullish trend, with a market cap of $15.1 billion. The Durango upgrade aims to enhance cross-chain communication and network scalability. With the upgrade, AVAX is anticipated to experience further gains, potentially surging by 20% or more.
Our analysis of the situation
The cryptocurrency world is known for its unpredictable nature, and Avalanche (AVAX) has not failed to live up to this reputation. With a staggering 21% gain in the last seven days, the AVAX altcoin has been creating waves and has recently surged 6.2% to reach a price of $41.30, accompanied by a market cap of $15.1 billion.
This rollercoaster ride saw a small dip on Monday, but it swiftly rebounded, riding the coattails of the broader cryptocurrency market. After enduring a significant correction at the close of 2023, AVAX embarked on a bullish rally that is showing no signs of slowing down. As the broader altcoin market gains traction, AVAX appears poised to capitalize on further growth.
Recent times have seen Avalanche displaying noteworthy volatility, with the price often retracting to a support threshold just above $30 since the beginning of the year. January 23 marked a low point, with the price dropping to $27.85, but February has witnessed a swift recovery from this slump.
The eagerly awaited AVAX Durango upgrade is scheduled to take place today, February 13. The upgrade holds considerable significance for the Avalanche network, aiming to fortify cross-chain communication and improve scalability in preparation for its mainnet release. In addition to these enhancements, the launch of Avalanche Warp Messaging (AWM) will facilitate enhanced on-chain and cross-chain communication, ushering in a more interconnected and resilient network.
As the excitement surrounding the AVAX Durango upgrade builds, the price has surged above the 50% retracement level, currently sitting comfortably between $28.03 and $49.95, supported by robust levels. The upward trajectory is further reinforced by the upward movement of the Simple Moving Averages (SMA) and the Relative Strength Index (RSI), suggesting growing momentum and potential for further gains.
While a surge in buying pressure could potentially drive the price up by 20%, reaching $49.95, a downward correction may test the $32.08 support level. Nevertheless, a significant drop could see AVAX price plummeting towards the bullish breaker zone, with a conclusive breach below certain levels spelling a continuation of the downtrend.
As AVAX treads the path towards the much-anticipated upgrade, the cryptocurrency community eagerly anticipates the implications of this significant event, keeping a keen eye on the potential for further price movements in what promises to be an enthralling journey for AVAX holders and enthusiasts alike.
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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