price could skyrocket if it breaks this mark

For weeks now, the price of the Avalanche network cryptocurrency (AVAX) has been struggling to stand out, with the price fluctuating between US$30 and US$39. However, the biggest difficulty is overcoming the US$40 barrier, which proves to be great resistance.

At the time of writing this article, AVAX is worth around US$36.60, an increase of 5.6% in the last 24 hours. Even with this appreciation, the cryptocurrency is stuck in a price cycle and does not appear to be able to break it.

But, finally, the charts indicate an increase to US$40. And if that happens, the cryptocurrency could follow an upward path towards US$146.22, its last historical high. See how this can happen.

AVAX already aims to reach the $40 mark regardless of the market situation. Despite suffering external influences, cryptocurrency has other factors that support this goal. Factors include its recent developments and the technical aspects supported by the community.

One of these factors was Avalanche’s entry into the tokenization segment, competing with networks such as Ethereum and Solana. In this sense, Avalanche tokenized a fine wine investment fund in an attempt to ride the wave of tokenization and create its own ecosystem.

However, the road is still long, as Ethereum alone has managed $381 million in tokenized United States Treasury bonds. Now, Avalanche will help Ethereum by doing the same.

Additionally, the network also launched a liquidity mining incentive program called Memecoin Rush in a bid to increase memecoin activity on the network. The program offers liquidity mining incentives of $1 million.

Technical Factors Supporting AVAX Rally

In technical terms, AVAX is entering a bullish zone as investors are flocking to buy the token. The Moving Average Convergence Index (MACD), with simple and exponential moving averages for 10 and 20, indicates a buying spree in AVAX.

Currently, AVAX’s main resistance lies in the $39.02 region. This creates the possibility that AVAX price will finally break this resistance and reach $40 in the coming days. If that happens, the next price target is the $54.82 region. In other words, a potential increase of 18%.