Popular crypto analyst Benjamin Cowen is analyzing whether Avalanche (AVAX) has any gas left in the tank after its parabolic rally over the past three months.
The smart contract platform’s native token, AVAX, is trading at $117.85 at time of writing. The 11th-ranked asset by market cap hit its all-time high of nearly $145 over the weekend. The smart contract platform was trading around $13 at the beginning of August.
Cowen tells his 627,000 YouTube subscribers that AVAX is getting “somewhat extended.” However, he notes that Avalanche is at the same level of extension that it was at when it hit $60, and then it more than doubled in price.
Cowen says it would be “concerning” to see Avalanche get even more extended by continuing to rise in a short period of time.
He notes, however, that AVAX’s US dollar valuation is highly dependent on what Bitcoin (BTC) does.
“As long as Bitcoin stays above its 20-week moving average, then AXAX can continue to rally until it gets too far gone to sustain it in the short term, and then we’ll have a pullback. But as long as Bitcoin stays healthy, then, of course, AVAX can continue to make a move.”
Cowen notes that AVAX could go up another 50% against Bitcoin to reach the top of its uptrend channel against BTC. According to the analyst, such a move would price Avalanche at just over $200 if Bitcoin’s value remained steady.
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