Avalanche Moves Towards $100 As TVL Rebounds

Avalanche gained strong upside momentum and moved closer to the psychologically important $100 level as total value locked (TVL) continued to rebound.

Avalanche TVL Increased by More Than 35% in Half a Month

According to Defi Llama, Avalanche TVL has reached $11.12 billion after touching lows near the $8 billion level at the end of January. The undisputed leader in the segment is Ethereum with $127.6 billion TVL. The distant second place is occupied by Terra ($15.1 billion TVL), followed by Binance ($13.2 billion). Avalanche is ranked fourth.

The rebound of Avalanche TVL shows that the interest in Avalanche-based projects is growing, which is bullish for AVAX. I’d also note that total TVL has also rebounded in the first half of February, so Avalanche enjoyed support from the broad market sentiment.

A Move Above $100 Will Push AVAX Towards $106

AVAX managed to settle above the resistance at the $92 level and is trying to get above the next resistance which is located near the $97 level. RSI remains in the moderate territory despite the recent upside move, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If AVAX settles above the $97 level, it will head towards the psychologically important $100 level. A move above this level will likely attract more speculative traders and push AVAX towards the resistance level at $106. A successful test of this level will open the way to the test of the resistance at $110.

On the support side, the previous resistance level at $92 will serve as the first support level for AVAX. In case AVAX declines below this level, it will move towards the next support level which is located at $89. A move below the support at $89 will push AVAX towards the support at $85. The 50 EMA is located in the nearby, so AVAX will likely get material support near this level.