How High Will AVAX Price Go? Will It Reach a New All-Time High?

• AVAX price recovered on the way to the weekend, with the technical chart showing a bullish reversal in the short run.
• The token must break out of the $20 psychological resistance to strengthen its bullish momentum.
• Several constraints will likely prevent the token from overtaking its prevailing all-time high of $146.22.

AVAX Price Recovery

Avalanche (AVAX) surprisingly emerged as one of the top gainers amid the ongoing fallout in US President Donald Trump and Tesla CEO Elon Musk’s alliance. On Friday, the cryptocurrency rose by over 7% in 24 hours from a $18.48 low to a $19.92 high.

However, analysts believe that the price action of AVAX was primarily influenced by technical trends. Based on its 14-range Relative Strength Index (RSI) indicator in the four-hour chart, the token appears to be bouncing back from the oversold territory, suggesting a bullish reversal in the short run.

ADVERTISEMENTSource: TradingViewAlong the way, AVAX price was able to defend its demand zone just below the support line of a descending channel after the token’s top last month. The analyst believes price action will likely shift up, and $21.70 appears to be its major resistance area. From there, the token could transition to a bullish trajectory if it sustains momentum and breaks the $20 psychological barrier.

Will It Reach A New ATH?

At its current price, AVAX is over 87% below the all-time high (ATH) of $146.22 it achieved four years ago. Despite that, several bag holders, especially those who bought near its peak figures, are clinging to the hope that the digital asset will emulate its historical top or at least get near its value at around $100. But then again, it may not be the case anymore.

Tighter Market Competition

Avalanche is a permissionless, scalable, and decentralized network with a broad range of existing and potential use cases. The platform is very popular in Web3 gaming and the metaverse. It is also quickly expanding into other projects related to artificial intelligence (AI) agents, real-world asset (RWA) tokenization, and more. A vital part of its ecosystem is the AVAX token.

ADVERTISEMENTAs the market matures and institutional adoption increases, Avalanche will undoubtedly be among the chains that will benefit considerably from this trend. However, it may no longer be able to replicate its record high.

The chain faces a lot of competition in its niche. Additionally, it holds only over 1% of the total value locked (TVL) in the cryptocurrency market. It’s overshadowed by Ethereum (ETH) by a long shot, as well as other high-utility altcoin chains, such as Cosmos (ATOM) and Celestia (TIA).

Source: DefiLlama### Market Evolution and Differing Variables

The 2021 bull market was significantly distinct from the 2025 cycle. It is worth noting that when Avalanche entered the scene four years ago, it coincided with a period when people were seeking the next big project in the cryptocurrency space. Hence, it was a huge beneficiary of the ensuing hype. Unfortunately, its hype-based momentum has long sailed.

Moreover, most of AVAX’s supply was locked when it rose to its ATH. The suppression of the selling pressure was chiefly instrumental in its rise during that time. Fast-forward to the present, and the situation is already different.

At this rate, Bitcoin’s (BTC) skyrocketing dominance in the crypto market also puts the odds of another altcoin season on the back burner, dimming the chances of AVAX price ever hitting a new ATH.

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