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Avalanche Turns Heads at Game Developers Conference – Will AVAX Price Reach New Yearly High?

Last Updated March 26, 2024 10:28 AM
Valdrin Tahiri
Last Updated March 26, 2024 10:28 AM
By Valdrin Tahiri
Verified by Peter Henn

Key Takeaways

  • Avalanche garnered interest with its slogan in the 2024 Game Developers Conference (GDC).
  • The AVAX price increased considerably in March and is approaching its yearly high.
  • Will the AVAX price rally towards a new yearly high despite the end of the GDC?

Last week, Avalanche made the point that web3 games are not fun to play and launched an incentive program aimed at boosting its memecoin ecosystem. The latter is a continuation of a successful program in 2021, aimed at growing the decentralized finance (DeFi) ecosystem.

AVAX has been hovering around of the top 10 cryptocurrencies for several months. Could Avalanche’s dramatic entry at the 2024 GDC signal a turning point in its ecosystem, causing it to start catching up to Solana?

What Are Avalanche’s New Developments?

The 2024 GDC came to an end last week. Avalanche was a prominent attendee, showcasing multiple games  such as Shrapnel,  Nyan Heroes  and Providence . However, the main attraction was their booth and the “Web3 Gaming Sucks” slogan, which was intended to put into focus that the main problem with web3 games is that they are not up to par, rather than issues with their economic models.

Last week, Avalanche also launched Memecoin Rush , a $1 million liquidity program aimed to provide liquidity and help scale memecoins on Avalanche, such as KIMBO, COQ and GEC. It draws inspiration from the Avalanche Rush  DeFi incentive program in 2021, though that was much larger at $180 million.

The memecoin ecosystem of Avalanche is lagging well behind those of Ethereum and Solana. Memecoin rush  will give incentives to liquidity providers on SteakHut and Trader Joe, leading decentralized exchanges (DEX) on Avalanche. The native token of the latter, JOE, has increased over 70% in March.

AVAX Price Prediction: New Yearly High in Sight?

Technical analysis of the daily time frame shows AVAX broke out from two critical resistances on March 13 (green icon).

More specifically, it broke out from a horizontal resistance area and an ascending parallel channel. Recently, it validated the channel’s resistance trend line as support on March 24 and started the ongoing bounce.

AVAX is approaching the yearly high at $65.37. Interestingly, the high coincides with the 1.61 external Fib retracement of the previous drop, which caused a rejection (red icon) on March 18.

AVAX Price Daily Movement
AVAX/USDT Daily Chart | Credit: TradingView

If AVAX breaks it, the next resistance will be at $86.90. Conversely, a rejection could lead to a drop to the channel’s resistance trend line at $54.

The daily RSI and MACD are gradually turning bullish. The RSI is breaking out from its bearish divergence trend line (green line), while the MACD has nearly made a bullish cross (green circle).

Will the AVAX Price Start Catching up to SOL?

Since the all-time high of $151 in November 2021, the AVAX price movement has been nearly identical to that of SOL (orange). This was especially true until October 2023 (red line).

Since then, SOL has increased at a faster rate than AVAX. This discrepancy was further underscored after the initial high on December 2023 (yellow line).

Then, the SOL increase went nearly parabolic while AVAX corrected. While the AVAX movement still has the same shape as SOL, the scale of its increase is much smaller.

AVAX & SOL Comparison Chart
AVAX + SOL Daily Chart | Credit: TradingView

However, the wave count indicates AVAX is in the third wave of its upward movement, often the sharpest of three bullish waves. In contrast, SOL could be in wave four, allowing for the AVAX price to catch up.

If wave three extends to 1.61 times the length of wave one, AVAX can increase to the $96 resistance area, last reached in April 2022.

AVAX Could Be One of This Cycles Biggest Gainers

The current AVAX rally is well timed with the Game Developers Conference and the Memecoin Rush announcement. However, the AVAX price rally is not the sole cause of these events, since long-term readings and price action are bullish. A fractal suggests that AVAX is lagging behind SOL and could start playing catch-up soon.

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