Breaking Free from Resistance

Notably, AVAX has decisively shattered both long-term and short-term descending resistance trendlines.

While it still hovers below the formidable $12.00 long-term resistance, it has successfully overcome the $9.80 barrier.

Analyzing the daily timeframe, it becomes evident that the price had been held under a descending resistance trendline since April, with the decline hitting a low of $8.61 in September.

Shortly thereafter, the altcoin initiated an upward trajectory, eventually breaking free from the trendline in October a few days ago. This trendline had held for a significant 165 days.

SocialFi Boost and Bullish Momentum

It's worth noting that the acceleration of Avalanche's price increase coincided with the launch of Stars Arena, a SocialFi platform built on the Avalanche blockchain. Notably, Stars Arena draws inspiration from Friend.tech, a similar platform recently grappling with phishing issues.

The daily Relative Strength Index (RSI) lends support to the ongoing uptrend. Market participants utilize the RSI as a momentum indicator to discern overbought or oversold conditions, informing their decisions on asset accumulation or divestment.

Readings above 50, especially when coupled with an upward trajectory, indicate a bullish advantage. Currently, the RSI resides above 50, steadily ascending, signaling a bullish trend.

Looking Ahead: Despite these bullish AVAX price projections, it's essential to remain vigilant. AVAX has recently lost momentum and is retracing to the $9.80 support.