- AVAX is experiencing a bullish resurgence, with a 12% increase in price since January 1, signaling potential gains.
- The article also highlights the co-founder’s endorsement of meme coins, emphasizing their cultural significance and impact on AVAX’s recent price jump.
Avalanche (AVAX) is experiencing a resurgence in bullish momentum in the first week of 2024, following a sell-off on the last day of 2023. The current trading level stands at $43, marking a 12% increase since January 1. This upward movement is seen as a recovery, collecting liquidity below the December 19 swing low of $38.
One significant aspect supporting AVAX’s bullish thesis is the initiation of the next leg in the rally, a common indicator in altcoins for a continued upward trend. The recent rally suggests potential gains for AVAX in the near future, with investors eyeing a move into the resistance zone ranging from $51 to $56. If this materializes, AVAX could reach $55, constituting a substantial 27% move from the current level.
Adding weight to this optimistic outlook is the reset of the Relative Strength Index (RSI) to the mean level of 50, indicating a balanced market. However, caution is advised for investors, as a failure to post a higher high above $49 coupled with a lower low below $37 could invalidate the bullish thesis. Such a scenario might lead AVAX back into the weekly imbalance, ranging from $31 to $22, resulting in a 16% fall from current price levels.
In an interesting turn of events, the co-founder of Avalanche, Emin Gün Sirer, spoke in favor of meme coins, a move announced by the Avalanche Foundation on December 29, 2023. The non-profit organization revealed its decision to add meme coins to its portfolio, a move considered a luxury by Sirer.
He compared those skeptical of meme coins to individuals who ignored or criticized past cultural and tech trends, emphasizing that meme coins bring a unique cultural context to the crypto space.
Sirer acknowledged that the Avalanche ecosystem has a substantial institutional presence, allowing the Foundation to diversify and invest in meme coins. Drawing parallels between owning meme coins and luxury wear like Balenciaga, Sirer highlighted their cultural significance and their appeal to specific audiences.
Following the announcement of the Avalanche Foundation’s foray into meme coins, the price of AVAX experienced a notable jump from $39 to over $42. However, Sirer issued a major warning about meme coins, emphasizing their risks, including heightened volatility and reliance on narratives rather than fundamentals.
He cautioned that meme coins are valuable only as long as they remain enjoyable and urged traders and investors to exercise caution.
In response to the Foundation’s move, several meme coins on the Avalanche blockchain, including Coq Inu (COQ), Husky Avax (HUSKY), and Shibavax (SHIBX), witnessed significant price surges, some even reaching double and triple digits.
As AVAX navigates its price movements, the intersection of bullish technical indicators and the Foundation’s endorsement of meme coins adds an intriguing layer to the altcoin’s narrative in the crypto market. Investors will be closely watching how these dynamics unfold in the coming days.