Avalanche (AVAX) is currently under the microscope after its parabolic rise over the past three months. Popular crypto analyst Benjamin Cowen examines the coin’s chances of sustaining its rally.
At the time of writing, AVAX, the native token of the smart contract platform, is trading at $117.85. AVAX hit an all-time high of nearly $145 over the weekend, which ranked it 11th on market cap. At the beginning of August, the smart contract platform was trading for about $13.
Cowen tells his 627,000 YouTube subscribers that AVAX is getting “somewhat extended.” However, he notes that Avalanche is at the same level of extension that it was at when it hit $60, and then it more than doubled in price.
The possibility of Avalanche rising even further in a short period would be “concerning,” according to Cowen.
He notes, however, that AVAX’s US dollar valuation is highly dependent on what Bitcoin (BTC) does.
“As long as Bitcoin stays above its 20-week moving average, then AVAX can continue to rally until it gets too far gone to sustain it in the short term, and then we’ll have a pullback. But as long as Bitcoin stays healthy, then, of course, AVAX can continue to make a move.”
Cowen notes that AVAX could go up another 50% against Bitcoin to reach the top of its uptrend channel against BTC. According to the analyst, such a move would price Avalanche at just over $200 if Bitcoin’s value remained steady.
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Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
