Can Avalanche (AVAX) Price Hit a 2-Year High and Reach $70?

Ichimoku Clouds Are Drawing a Potential Bullish Scenario

The Ichimoku analysis of AVAX reveals a moderately bullish sentiment due to the price positioning above the cloud, which tends to indicate an upward trend. The cloud appears to be changing color from red to green, suggesting a shift towards a bullish market as Span A rises over Span B.

The Conversion Line, which represents short-term price momentum, is above the Base Line, a medium-term momentum indicator, further confirming the bullish sentiment for AVAX. The Lagging Span, however, is within the price range from 26 periods ago, indicating a lack of strong momentum, as ideally, it should be above the price action for a strong bullish confirmation.

AVAX Ichimoku Lines and 4-Hour Price Chart. Source: TradingView.

The Ichimoku Cloud is a technical analysis method that paints a dynamic picture of market trends and potential support or resistance areas on a chart. It combines five lines that show short to long-term price action and future projections, forming a ‘cloud’. A price above the cloud signals bullish conditions, while below indicates bearish trends.

The interplay of these lines also gives insights into market momentum and can signal potential reversals or continuations of trends. The price action remains above the Base Line, yet it closely follows the Conversion Line, which sometimes can act as a first level of support in an uptrend.

The absence of a bearish crossover, where the Conversion Line would drop below the Base Line, maintains the bullish outlook. As shown in the chart, the volume indicator is relatively low, which could question the strength of the current trend, and traders might look for an increase in volume to confirm further bullish advancement.

AVAX Price Prediction: Will It Reach a 2-Year High?

AVAX’s price hasn’t reached $70 since April 2022. That could happen soon if AVAX is able to break some resistances ahead.

The In/Out of the Money Around Price (IOMAP) chart for Avalanche (AVAX) displays a concentration of support at the $53 to $54.75 price range, where holders acquired the largest volume of AVAX tokens. This is reflected in the presence of substantial green bubbles, indicating these holders are ‘in the money’ and might act as a buffer against price declines.

Avalanche IOMAP Chart. Source: IntoTheBlock.

The IOMAP chart is a visual tool that illustrates price levels where significant numbers of asset purchases have occurred, showing potential support and resistance zones based on the current price. It highlights where holders might be making a profit (‘in the money’), breaking even (‘at the money’), or experiencing a loss (‘out of the money’).

Green areas signal large clusters of profitable purchases, indicating potential support, while red areas denote unprofitable ones, suggesting resistance.