Early on Tuesday, we are seeing some choppy trading underway in Avalanche (AVAX), slipping back down after briefly reclaiming the 11th position in terms of market capitalization once again, after losing it to Uniswap over the weekend. At the time of writing, AVAX/USD is trading at around $66.01.

After the downbeat mood in the crypto market last week over the potential fallout of China’s Evergrande defaulting on its debt, the return of the bullish mood has helped traders cheer the news of a $230 million round of funding through a sale of AVAX tokens. The news of the private investment in the blockchain network received a delayed reaction on account of the market sentiment and has helped strengthen investor confidence in the cryptocurrency lately.

In celebration of its first anniversary since the mainnet launch, the team of developers behind Avalanche have announced several promising partnerships that can spur the adoption of its technology further. The $180 million incentive program Avalanche Rush helped onboard several key DeFi projects onto its network over the past few weeks, sending its popularity soaring. In addition, the developers announced a successful activation of the Apricot upgrade on the Fuji testnet, which once rolled out to the public, will support its high TPS and bring down transaction processing costs further, making it even more attractive to projects.

Avalanche’s price is also enjoying support from a surge in the TVL of its leading DeFi project, the Trader Joe DEX. The second most popular DeFi project on its ecosystem has registered a sharp increase in TVL by almost 60% over the past week, contributing to higher activity on the blockchain which is supporting the price of the AVAX token. According to a popular crypto analyst who goes under the pseudonym Lomah Crypto, there is a disconnect between AVAX price and its value, which indicates a strong bullish mood among analysts towards the token.

Another leading crypto trader and influencer ‘Altcoin Sherpa’ predicts a 40% rally in Avalanche soon. Based on his technical analysis, he expects AVAX to surge to $100 in the coming weeks, which would be a rally of around 40% from current levels.

Key Levels to Watch

On the 4-hour price chart of AVAX/USD, most of the smaller moving averages as well as the MACD are exhibiting a bearish bias. Although, the larger MAs – 100 EMA, 100 SMA, 200 EMA and 200 SMA, along with the momentum indicator point to some buying interest as well.

Avalanche’s price is sitting very close to the pivot point at $66.20, making it very interesting to watch at the moment. Further selling pressure can drive AVAX lower until the immediate support at $52.69. On the other hand, if buyers step in now, we can see the price rise above the pivot point and make its way higher towards the first resistance at $80.34.