• The relative strength index (RSI) indicates that the coin is being oversold
• The downward pressure on the token might be overextended
• The potential ROI of the coin might be 16.78% by the end of this year

Avalanche (AVAX) is being observed to see whether it will stage a comeback as the year is nearing its end. Even though the coin has faced issues with on-chain momentum and institutionalisation, investors hope for the better side of the coin to be displayed in the coming days.

At press time, the coin is trading at $13.27 with a 2.86% decrease rate. The market cap of the token has exceeded $5.69 billion, and the volume of AVAX is almost $725.69 million.

Also Read: Avalanche (AVAX) Price Forecast Suggests $29.29 Target Remains Possible

Institutional Adoption and On-Chain Strength of Avalanche

A significant bullish factor that helps AVAX to grow institutionally is the traction it gets. On-chain data shows that the coin’s total value locked (TVL) on AVAX-based protocols remains in a stable position. This suggests that traders and developers keep on engaging with the platform. 

Also, the Avax Foundation has declared current collaborations that are aimed at increasing collaboration with better platforms. These partnerships have a keen interest in bettering the liquidity and cross-chain usage of decentralised systems.

Technical Outlook & Price Forecasts

The data provided by TradingView indicates that the coin is experiencing resistance (blue) at $13.76 and can go up to $14 if the token crosses the level of resistance. The support line (yellow) of the coin is at $12.70 and can dip to $12 if AVAX dips below the level.

The relative strength index (RSI) indicates that the coin is being oversold. This indicates that the downward pressure on the token might be overextended. The Stochastic Momentum Index (SMI) shows that the coin is on its path to a short-term bullish scenario as the SMI line (blue) is above the signal line (orange).

According to the data provided by CoinCodex, Avalanche is poised to achieve an average price of $ 14.87 and a maximum price of $ 15.67 by the end of 2025. The potential ROI of the coin might be 16.78% by the end of this year.

Even though there is a small amount of volatility that stays persistent, the macroeconomic factors and social sentiment towards the coin can bring it favour.

Also Read: Avalanche (AVAX) Technical Setup Shows Upside Momentum With $43 to $145 Price Targets