Digital Assets
Avalanche (AVAX) Made a New Attempt to Reach ATH in 2022, but its Price was Rejected
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The new year has started, and that means new opportunities in the crypto industry. Historically, the holiday season is a very volatile time, and the last few days have certainly lived up to the reputation.
Some coins even managed to hit all-time highs, while others were well on their way to doing it, but they ended up running into trouble along the way. Avalanche is one example of this, as it finally started to recover in the last days of December, only to hit a wall on January 1st, 2022.
Avalanche in 2021
Avalanche (AVAX) saw its ups and downs in 2021, but overall, the year went pretty well for the coin. Back in early January, AVAX price started growing, going from $3.6 to $13 in only the first two weeks. While this level ended up posing as a resistance for a while, from January 17th until the end of the month, the growth resumed in February, and it took AVAX to nearly $60 in only 10 days.
After such a rapid surge, however, AVAX corrected to $23 by February 28th, which is still around seven times higher than the coin’s price in early January. From that point forward, AVAX price ended up trapped between a support at $20 and a resistance at $40, spending the next two and a half months fluctuating between these two points. The pattern was finally broken in mid-May when a market-wide price crash caused Avalanche to drop.
The coin fell from $40 to $20, broke this support, and it got turned into a resistance. AVAX did find its new bottom at $10, and it spent most of the summer fluctuating between $10 and $15, Finally, in early August, things started to change and AVAX price surged again. It broke the resistance at $15, and then the ones at $20, $40, and it nearly reached $60 before losing its momentum on August 24th, with the price of $55.
It dropped to $40 again, which was now its support, only to skyrocket again and nearly hit $80 by late September. The coin then repeated the pattern by dropping to $60 for a while, only to surge higher than ever before, and this time, it climbed all the way up to $135, marking its new ATH on November 22nd.
Once again, AVAX price corrected, and this time, it went down to $80. This wasn’t just a part of AVAX’s regular cycle, but also a market-wide crash that strongly enhanced the coin’s price drop, causing it to lose nearly half of its value. But, AVAX quickly recovered to $120 by December 21st.
Its price got sucked into a bearish wave once again just before it managed to breach this resistance and turn it into a support that would allow it to skyrocket to a new all-time high, in what is now known as the Christmas crash. The crash led it down to nearly $100, but just before it could reach this level, Avalanche started recovering again, and it reached the resistance at $115 on January 2nd, 2022.
Whether or not the market interference was enough to disrupt AVAX’s cycle permanently and stop its bullish trend is not yet clear. Hopefully, the coin might be able to continue where it left off in a short while. Even if not, it is still worth noting that AVAX is miles above where it was last year at this time, so its progression is most certainly extremely bullish. Now, all that investors and traders have to do is be patient, and see what new opportunities 2022 will have for the coin.
To learn more about this token visit our Investing in Avalanche guide.
