AVAX’s $60 Target in Doubt as Avalanche9000 Fails to Boost Price
2024-12-17
Category: None

Avalanche’s ‘biggest network upgrade’ Avalanche9000 went live on the mainnet on December 16. However, AVAX’s reaction to the upgrade has remained muted, as the altcoin appears poised to keep declining. 
While the AVAX token price has risen by 3% over the past 24 hours, the decline in trading volume suggests that the rally reflects broader market growth rather than actual demand for the altcoin. 
Avalanche9000 Upgrade Live, But AVAX Struggles to Maintain Momentum
Described as the “largest network upgrade Avalanche has undergone since mainnet launch,” the Avalanche9000 upgrade went live on December 16. Key improvements introduced by the upgrade include a 99.9% reduction in layer-1 deployment costs, a 96% drop in C-Chain fees, and the ability to spin up L1s with the Primary C-Chain quickly.
However, this upgrade has yet to excite AVAX holders as they continue to sell their coins. While AVAX’s value has risen by 3% in the past 24 hours, the accompanying decline in its trading volume suggests that the rally merely mirrors the broader market uptick.
When an asset’s price rallies while its trading volume dips, it suggests that the price increase is not being driven by strong buying activity. Instead, the rally reflects broader market trends, with fewer participants actively trading the asset. This signals that the coin lacks actual demand, potentially making it less sustainable.
Moreover, an assessment of the AVAX/USD one-day chart shows that the coin is poised to fall below its 20-day exponential moving average (EMA). The 20-day EMA measures the average price of an asset over the last 20 days, with more weight given to recent prices. 
When an asset’s price falls below this key moving average, it signals a shift in momentum, suggesting a potential downtrend or weakening of buying pressure. This is a bearish signal, indicating that the asset might face further price declines if the trend continues.
AVAX Price Prediction: Will Support Hold or Break?
AVAX trades at $50.65 at press time, hovering above support at $47.02. If the market’s reaction around the Avalanche9000 upgrade remains dulled, the coin’s price may test this support level. AVAX’s price could plunge to $41.34 if it fails to hold. 
On the other hand, if market sentiment becomes increasingly bullish, the AVAX token price will break above resistance at $55.10 and attempt to reclaim its yearly high of $65.39. 