As the cryptocurrency market turned bullish in recent hours, Avalanche (AVAX) has not been left behind, showing a promising upward trend. Comparing this rally to the one seen in 2023, the outlook for AVAX appears optimistic. Here’s a closer look at the current situation.

Avalanche Gathers Momentum

Data from CoinMarketCap revealed that AVAX experienced a 4% price increase over the past week. The bullish momentum intensified over the last 24 hours, with the token’s price rising by more than 6%. As of the latest data, Avalanche was trading at $21.91, with a market capitalization exceeding $8.8 billion, positioning it as the 12th largest cryptocurrency.

Meanwhile, IntoTheBlock highlighted an intriguing development in a recent tweet. According to the tweet, at the end of 2023, AVAX surged from $9 to $44 in just two months.

In 2024, AVAX’s performance is closely tied to broader market sentiment. A wave of optimism could propel it toward the critical resistance level at $30, while a negative shift in sentiment might see it fall to $16.

The analysis revealed that AVAX’s weighted sentiment spiked significantly on August 19, indicating a surge in bullish sentiment around the token. Its social volume also increased, reflecting growing popularity within the crypto space.

Will AVAX’s Bull Rally Persist?

Bitcompare’s research indicated that AVAX’s trading volume rose by 20% as its price gained bullish momentum. Such an increase in volume often lays the groundwork for a sustained bull rally.

However, at the time of writing, AVAX’s fear and greed index was in a "greed" phase. Historically, when this metric reaches such levels, the likelihood of a price correction increases.

To determine whether AVAX is on track to hit $30, we analyzed its daily chart. The Bollinger Bands showed that AVAX successfully broke above its 20-day simple moving average (SMA). Additionally, the Chaikin Money Flow (CMF) saw a sharp uptick, and the MACD indicated a bullish crossover—both suggesting that AVAX could soon approach the $30 mark.

However, the Money Flow Index (MFI) signaled a bearish trend as it began moving downward.

Though market indicators remain bullish, a significant amount of AVAX is likely to be liquidated if the price reaches $22.1. Such liquidation events often lead to price corrections.

If AVAX turns bearish, investors could see the token drop to $20.4 in the short term.