Avalanche (AVAX) Flips Dogecoin Amid 50% Jump, Enters Top 10

Avalanche (AVAX) has slipped into the top 10, overtaking Dogecoin (DOGE) as the ninth largest cryptocurrency by market cap amid an impressive 50% rally in seven days.

The recent price surge from Avalanche comes amid the ongoing correction recorded by some of the largest crypto assets. Notably, Bitcoin (BTC), the premier crypto asset, has dropped 6% over the past week, with Ethereum (ETH), the king altcoin, down 3% within the same timeframe.

It bears mentioning that this correction-induced seven-day collapse does not cut across the entire crypto market. Altcoins such as Cardano (ADA), Binance Coin (BNB) and Solana (SOL) are witnessing impressive gains within this timeframe. However, Avalanche has secured a spot as one of the largest gainers.

Avalanche’s Rollercoaster Ride

AVAX is the third biggest gainer among the top 100 assets over the last week. Avalanche’s recent uptrend began on Dec. 4 when it broke out of a bullish flag it had formed on the daily timeframe. 

Recall that Avalanche recorded its first positive momentum in late October, when it soared 185% from a low of $8.64 on Oct. 19 to a high of $24.68 on Nov. 17. The rally came on the back of the uptrend witnessed in the broader market. However, AVAX faced resistance at the $24.68 high.

This resulted in a drop to $18.92 on Nov. 21 and a subsequent consolidation. Interestingly, this consolidation led to the formation of a bullish flag structure.

As the consolidation extended to December, the flag structure persevered. However, this consolidation ended on Dec. 4 when AVAX broke above the flag.

AVAX Flips Dogecoin

Upon the breakout, Avalanche rallied by another 107% to a 19-month high of $42.9 yesterday before witnessing another roadblock. Despite this roadblock, AVAX is still up 90% since Dec. 4, currently trading for $39.38 at the reporting time. This sustained rally has resulted in the asset overtaking Dogecoin.

Avalanche’s market cap has soared to $14,402,097,036 at the time of reporting, far above Dogecoin’s current valuation of $13,225,988,830. This puts AVAX ninth on the list of most valuable crypto assets, with $7.12 billion away from taking Cardano’s spot as eighth largest asset.

Avalanche Now Overbought

Amid the upsurge, Avalanche has now slipped into overbought territories, with a daily Relative Strength Index (RSI) of 87.88. This high RSI suggests that the recent gains are relatively strong compared to losses, and there’s a possibility of a potential reversal or a correction in the near term. 

Should this correction materialize, AVAX’s first line of defense stands at the $35.68 price territory. If this zone fails to hold, the bulls would hope on the $30.70 price territory to defend against any drops below $30. 

Dropping to $30 would bring Avalanche’s market cap to $10.97 billion, potentially relegating it below Dogecoin. Such a scenario could trigger a cascade of selloffs, leading to steeper declines, and bringing the $27 price support into play.