As a researcher with extensive experience in the dynamic world of cryptocurrencies, I must say that the recent surge in AVAX price is indeed intriguing. After months of decline and a flash crash that brought it to its nine-month low, seeing AVAX gain nearly 50% in just two weeks is quite remarkable.
After almost six months of continuous drop, the native coin of blockchain Avalanche, AVAX, is experiencing a respite, with an increase of more than 11% in the last day. At present, it’s being traded at $25.87, and it stands out as one of the top performers among the top 100 cryptocurrencies based on market capitalization.
As a crypto investor, I’ve noticed some encouraging signs for AVAX lately. Despite hitting its lowest point in nine months on August 5 at around $17.29, it’s important to remember that this was a sudden dip, or flash crash, triggered by a wider market correction following Bitcoin‘s drop to $49,500 early last month. However, the impact on AVAX was more substantial than many other cryptocurrencies in the broader market.
It seems that over the last fortnight, Avalanche’s price may have turned around, indicating a possible uptrend could be underway.
In the last fortnight, AVAX has experienced a significant surge of approximately 50%, while its daily trading volume has increased by an impressive 88.85%. This growth has pushed its trading volume to around $461 million. Moreover, its market capitalization is now valued at over $10.4 billion, marking a 11.35% increase on the day.
AVAX Price Surge: Sustainable or Not?
Essentially, there are several reasons contributing to the recent changes in AVAX‘s price. One significant factor is the anticipation surrounding the Avalanche token unlock plan. Investors are particularly interested in the reduction of unlock events post-2024, as this could potentially boost the token’s value and, in turn, foster the expansion of the ecosystem.
Additionally, there’s been an increase in new investors flocking to the Avalanche network. Last Thursday, Grayscale Investments introduced the “Grayscale Avalanche Trust”. On the same day, global asset manager Franklin Templeton increased its Franklin Onchain US Government Money Fund by incorporating the network. The firm stated that this move was due to the rising demand from investors.
It’s uncertain how these advancements specifically impact the inherent worth of AVAX, but it’s clear that they foster a more optimistic outlook towards the token.
What Technical Indicators Say
Signals such as the Relative Strength Index (RSI) and Bollinger Bands are pointing towards robust bullish tendencies in the market. For example, AVAX‘s current RSI reading is 61.47, which places it above the neutral range and far from the overbought threshold of 70. In essence, this indicates that there is currently no reason for concern regarding potential reversals.
Furthermore, you’ll find that the cost of AVAX sits just over the upper boundary of the Bollinger Band, currently at approximately $24.79. This suggests that AVAX is being traded within a relatively secure region, distinct from the price range it has recently seen volatility in.
The significant increase in trading volume serves as the last missing piece in our analysis. Given the immense level of trading, indicative of high levels of activity and investor enthusiasm, the overall market trends for AVAX suggest a powerful bullish indication.
Read More
Sorry. No data so far.
2024-08-23 14:02