Avalanche (AVAX) is Currently Trading at $19.26, up 1.81% from the Previous Trading Day

Crypto analyst Andrew Griffiths points to a productive retest of the important support area with a possible upside move that can be sustained.

Crypto analyst Andrew Griffiths sees an opportunity in Avalanche (AVAX) as the token continues to recover from the recent downturn. According to the analyst, the cryptocurrency is showing signs of strength, indicated by a productive retest of the important support area.

As visualized in the chart above, there is a crucial level of support that, once broken, can be used to guide trades. In the case of AVAX, the major support area lies at $17.50, offering a good entry point with a 3:1 risk-reward structure. Above this level, there is a resistance zone to watch out for at $18.70, which, if breached, can open the way for further upside.

A break above the 20-day Simple Moving Average (SMA) at around $21.50 can be seen as the beginning of a new bull run, offering another perspective.

In other developments, Bitwise's analyst, Ryan Rasmussen, highlighted the surprising predictions made by Standard Chartered for a five-year forecast of AVAX reaching $250 by 2029. These estimates translate to more than 1,200% from the current price levels.

The bank anticipates that AVAX would surpass both Ethereum and Bitcoin in relative value, based on better ratios such as BTC-to-AVAX declining from 3,636 in 2025 to 2,000 in 2029.

Despite the varying opinions on the cryptocurrency's potential, Standard Chartered's optimism is fueled by Avalanche's expanding ecosystem, notably its competitiveness in the Ethereum Virtual Machine (EVM) chains. The bank's experts believe that Avalanche has the potential to become a top platform in the next cycle of the market.

Avalanche's technological advancements, particularly following the December 2024 Etna (Avalanche9000) upgrade, have been instrumental in driving new interest in the token. The upgrade significantly reduced the price of subnets, now known as Layer 1 blockchains, from approximately $450,000 to nearly zero.

This foundational development further lowered the barriers to entry, contributing to a 40% surge in developer activity.

Geoffrey Kendrick, the head of digital assets research at Standard Chartered, estimated that around 25% of active subnets are now compatible with Etna. He explained a migration trend from Ethereum L2 solutions toward Avalanche due to its EVM compatibility and decreased operational costs.

Although Avalanche's fees are still higher compared to some of Ethereum's alternatives, its rising popularity in games and consumer applications sets the stage for broader adoption and potential market dominance.