Bulls in Control as AVAX Reclaims $100, Record Highs Next?

It’s been a bullish week thus far for smart contract platform Avalanche’s native token AVAX. AVAX/USD has surged from Monday lows around $75.00 per token to current levels back to the north of the $100 mark and at one point even hit $110 on Thursday. On the week, the cryptocurrency stands to gain more than 17.0%.

The gains come despite significant selling pressure seen elsewhere in cryptocurrency markets, such as in Bitcoin and Ethereum, which are down over 6.0% about 7.5% respectively on the week. AVAX’s total market capitalisation currently sits at roughly $25B, though this is about 30% below the mid-November high, when the market cap was around $34B (and AVAX/USD was worth over $140).

Wall Street Bullishness

Wall Street has been growing increasingly bullish on the potential growth and scalability for the cryptocurrency. AVAX was boosted earlier in the week after Bank of America released a bullish report on the cryptocurrency, claiming that the platform’s ability to remain decentralized and secure while scaling makes it a worthy alternative to Ethereum for Defi, gaming, and NFT projects.

Bank of America added that the Avalanche subnet had seen growing adoption in recent months, evidenced by the 6,255% spike in total value locked in DeFi protocols on the blockchain since August.

The bank also pointed to the fact that corporations are using the platform, citing the recent news that auditing giant Deloitte is to build its Close as You Go (CAYG) disaster-relief platform on Avalanche, which according to BoA, is a good example of corporations using blockchain technology to lower costs and increase efficiencies.

Technicals Looking Bullish

Focusing on AVAX from a technical perspective, things are looking bullish. The cryptocurrency recently bounced at a key uptrend that has been supporting the price action since early September, signaling that the long-term uptrend remains healthy.

Meanwhile, the fact that AVAX/USD found support so well at the September high around $80.00 per token will fill the bulls with confidence that dip-buying demand for AVAX remains very strong when it pulls back to key levels.

AVAX Pushes Above Key Downtrend

Zooming in somewhat and looking at AVAX on the four-hour candlesticks, it can also be seen that the cryptocurrency recently broke to the north of a downtrend that has been capping the price action since the November record high. Moreover, upon the initial retest of this downtrend, AVAX/USD appeared to find support, suggesting the cryptocurrency can push onwards and upwards.

Bullish technicians will eye a test of early December highs around $127.00 per token and further resistance just above it at $130 ahead of a potential test of record levels in the $140.00s.