YEREVAN (CoinChapter.com) — Avalanche-based memecoins have gained considerable traction in the previous month. One of them is Coq Inu, which has seen a 100x surge since its inception. This surge in memetic activity on the Avalanche blockchain has contributed to a positive outlook for AVAX, with predictions of a bullish trend that could surpass its 2021 bull run.

Did You Know? The Avalanche Foundation has announced an initiative to purchase meme coins as part of their “Culture Catalyst” program in late December 2023, leveraging a $100 million fund to support this program.

The aim is to “recognize and encourage” the unique culture and fun symbolized by memecoins. This move aligns with the Foundation’s broader strategy to diversify across various crypto asset categories, including NFTs, Real World Assets (RWAs), and other crypto asset types.

Avalanche Memecoins in 2024

In January 2024, the Avalanche blockchain saw a notable surge in the popularity of memecoins, driven in part by the Avalanche Foundation’s strategic investments in this segment.

As mentioned, among the most prominent Avalanche-based meme coins, Coq Inu (COQ) gained attention for its rapid price increase and “community-focused approach,” boasting a significant market capitalization ($77 million, as of writing) and listings on major exchanges such as Kucoin, Trader Joe, and Bybit.

Husky Avax and Shibx are other notable mentions, with Husky Avax making strides in the NFT marketplace and Shibx rewarding its holders through transaction distributions. Kimbo and Bingo also emerged as key players, with Bingo being particularly active on the Trader Joe exchange.

However, the question remains, can these memecoins push AVAX to a new high? Let’s take a look at the technicals.

Avalanche token In A Bull Flag

Avalanche’s AVAX token confirmed a technical pattern named the ‘bull flag.’ In detail, a bull flag pattern appears in an uptrend, showing a brief consolidation (flag) following a sharp price increase (flagpole).

On the AVAX daily chart it formed after the token rallied a whopping 490% in two months and hit a yearly high of $50 in late December, subsequently correcting downward.

To calculate the price target, traders measure the flagpole’s height and project that distance upwards from the flag’s breakout point. This method predicts the next move’s potential magnitude, suggesting where the price might head after breaking out of the flag pattern.

In AVAX’s case, the target for the token would stand at over $60, or nearly 70% higher than the current value. While technicals support a possible bullish rally, AVAX still depends on overall market conditions. If the crypto sector experiences a bullish streak, the Avalanche token could also flourish.

The post Can Avalanche Memecoins Induce a 70% AVAX Rally? appeared first on CoinChapter.

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Filed under: Bitcoin - @ February 2, 2024 5:20 pm