Avalanche price gained 16%+ in the last week, but are positive media headlines enough to sustain the AVAX rally? fter spending nearly six months in a downtrend, AVAX price looks to be in the early stages of a trend reversal. On Aug. 5, it traded at $17.29, its lowest price in nine months. Over the past two weeks, the altcoin has reversed course with a 45% gain to $25.25.
While AVAX’s flash crash under $18 was mirrored by most altcoins which also sharply sold off during Bitcoin’s BTC $56,797 Aug. 18 correction to $49,500, AVAX $23.70 has been a laggard versus the wider market since topping out at $65 on March. 18. Positive news could be partially responsible for the recent uptick in the AVAX price. This week, AVAX investors zoomed in on the Avalanche token unlock schedule and noted that a sharp reduction in the number of token unlock events occurs after the end of 2024. Many investors believe that token unlocks generate sell pressure and deter the various types of long-term ecosystem development that support value accretion to the token.
On Aug. 22, asset manager Grayscale Investments also announced the launch of a new investment fund for AVAX, the “Grayscale Avalanche Trust,” which gives investors exposure to the networks’ growing ecosystem.
On the same day, global asset management firm Franklin Templeton also expanded its Franklin Onchain US Government Money Fund to the Avalanche network. As reported by Cointelegraph, “The fund, which launched in 2021, allows institutional investors access to Franklin Templeton’s blockchain-integrated record-keeping system, Benji Investments.”
While the token unlocks and Grayscale Investments and Franklin Templeton news are not necessarily fundamentals-based developments directly related to AVAX, the boost in positive sentiment could be influencing investors' feelings about the altcoin’s price prospects.
Avalanche (AVAX)
Avalanche (AVAX)
Can AVAX jump to $30 in July? Rising trader demand says yes!
- Traders who purchased AVAX within the last 30 days have seen the highest increase among all holder categories. Technical analysis showed that the token could see its price jump to $30.05.
- Unlike many other altcoins, Avalanche [AVAX] has been trading sideways in the last seven days. But that could be in line to change, according to AMBCrypto’s analysis.
One reason for this forecast is the observation we saw from the Addresses by Time Held. This metric shows if short-, mid, or long-term holders are buying more of a token. or doing otherwise.
It’s traders’ demand over holders faith
To achieve this, the blockchain analytic platform groups them into three. The first is Holders who have possessed the token for more than a year. Second in the group is Cruisers.
Cruisers are passive investors who have held a token between one to 12 months. Last on the list are Traders who purchased with the last 30 days.
At press time, traders had the highest increase out of the three. This implies that short-term holders are bullish on the AVAX potential.
Breakout on the cards?
From a technical perspective, the AVAX/USD daily chart showed the formation of a descending triangle. The descending triangle chart pattern appears when the price of a token hit lower highs and lower lows, and it is a bearish pattern.
However, this pattern helps to identify seller exhaustion. According to the chart below, this was the case with AVAX, with the pattern hinting at a breakout.
In addition, the Relative Strength Index (RSI) revealed that the token had exited the oversold region it was on 4th July. RSI measures momentum.
Readings below 30.00 indicate oversold levels while reading at 70.00 or above indicate overbought levels. Therefore, the rising reading implies increasing momentum for the altcoin.
Avalanche (AVAX)
Avalanche’s Potential Surge: Could AVAX Enter the Top 10 Cryptocurrencies with a 200% Rally.
Avalanche (AVAX) has recently caught the attention of investors and analysts alike with its potential for a significant price rally. Amidst a month-long decline in its price, AVAX has shown signs of recovery and the formation of a bullish pattern, fueling optimism for a substantial surge in the near term.
Avalanche’s Recent Market Performance
After experiencing an 18% decline in the past month, Avalanche’s price action has taken a positive turn. The daily chart for AVAX recently turned green, signaling a potential reversal from its downward trajectory. At the time of writing, AVAX was trading at $26.15 with a market capitalization exceeding $10 billion, solidifying its position as the 13th largest cryptocurrency by market cap.
Bullish Pattern and Technical Analysis
A significant development contributing to AVAX’s bullish sentiment is the formation of a bullish falling wedge pattern on its price chart. Captain Faibik, a respected crypto analyst, highlighted this pattern, which suggests that AVAX has been consolidating within this pattern since the beginning of the year. This consolidation phase often precedes a breakout, potentially leading to a substantial price increase.
According to technical indicators analyzed by AMB Crypto, AVAX’s MACD (Moving Average Convergence Divergence) indicator has shown a bullish advantage. Additionally, the Relative Strength Index (RSI) has indicated an uptick, signaling increasing buying pressure and potential momentum for a bullish rally.
However, the Chaikin Money Flow (CMF) has shown a downward trend, indicating a potential bearish pressure on AVAX’s price movement. Despite this, market sentiment remains cautiously optimistic as investors anticipate a breakout above the bullish pattern.
On-chain Data and Investor Sentiment
Analyzing AVAX’s on-chain data provides further insights into investor sentiment and market dynamics. According to data from Into The Block, there has been a noticeable increase in the number of addresses holding AVAX for over a year. This uptrend suggests growing confidence among long-term holders, who anticipate a potential price surge in the cryptocurrency.
On the sentiment front, Santiment’s data reveals that AVAX’s weighted sentiment has remained negative, indicating prevalent bearish sentiment in the market. However, recent trends show a decline in AVAX’s funding rate, which historically correlates with potential price increases. This divergence in sentiment metrics highlights the uncertainty and mixed signals surrounding AVAX’s short-term price outlook.
Market Capitalization and Ranking Potential
The potential for AVAX to enter the top 10 cryptocurrencies by market capitalization hinges on its ability to sustain momentum and attract continued investor interest. With a current market capitalization exceeding $10 billion, AVAX is positioned just outside the top 10 list. A 200% price rally, as speculated by analysts, could propel AVAX into the upper echelons of the cryptocurrency rankings, competing with established players like Cardano (ADA) and Polkadot (DOT).
Conclusion
In conclusion, Avalanche (AVAX) presents a compelling case for a potential surge driven by technical patterns, market sentiment, and investor optimism. The formation of a bullish falling wedge pattern on AVAX’s price chart has flashed speculation of a significant price rally, possibly leading to AVAX entering the top 10 cryptocurrencies by market capitalization.
However, investors and stakeholders must remain cautious amidst the inherent volatility of cryptocurrency markets. Factors such as regulatory developments, macroeconomic trends, and global market sentiment can influence AVAX’s price trajectory in unpredictable ways.
As the cryptocurrency landscape continues to evolve, AVAX’s ability to capitalize on its technical strengths and navigate market challenges will be critical in determining its long-term success and position within the broader digital asset ecosystem.
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