As a seasoned crypto investor with a knack for recognizing trends and patterns, I’ve witnessed my fair share of market highs and lows. The recent surge in AVAX has caught my attention, especially considering its position among the top 100 cryptocurrencies by market capitalization.
In the last 24 hours, AVAX, the native currency of the Avalanche layer-1 blockchain, has experienced a 12% increase, placing it among the leading gainers in the group of the top 100 cryptocurrencies ranked by market value.
Over the past couple of weeks, I’ve noticed a promising upturn in Avalanche’s (AVAX) price trajectory, marking what seems to be an early phase of a potential trend reversal. Just a few short weeks ago, on August 5th, the token plummeted to a nine-month low of $17.29. Yet, remarkably, it has since surged by approximately 48%, reaching $25.78 as I pen this observation.
As I pen down these words, it appears that the daily trading volume for AVAX stands approximately at $511 million. The total market capitalization hovers around $10.4 billion, as per information sourced from crypto.news.
Despite AVAX briefly plummeting to $17.55 during Bitcoin‘s August 5 dip to $49,500, much like other cryptocurrencies, it has struggled to keep pace with the overall market since reaching a high of $65 on March 18.
The recent increase in AVAX‘s price might be partially influenced by optimistic updates. Investors have been paying close attention to the timeline for releasing Avalanche tokens, noting that the occurrence of these unlock events will substantially decrease after the end of 2024. Many think these unlocks contribute to selling pressure and impede the long-term growth of the ecosystem, which is essential for the token’s value increase.
Starting from the year 2024, only the Avalanche Foundation will be authorized to release tokens. All other releases will occur instead.
— REKTBuildr 🔺🔺🔺 (@rektbuildr) February 22, 2024
Furthermore, on August 22, Grayscale Investments unveiled a new venture called “Grayscale Avalanche Trust.” This move enables investors to connect with the Avalanche blockchain ecosystem. At the same time, Franklin Templeton, a worldwide asset manager, extended its Franklin Onchain U.S. Government Money Fund to the Avalanche network, reflecting the increasing attention from investors in this area.
As a researcher, I’ve been observing the recent advancements, like the token unlock schedule and the updates from Grayscale Investments and Franklin Templeton. While these events may not directly impact AVAX‘s intrinsic worth, they seem to have sparked a surge of optimism among investors. This positive sentiment could potentially elevate the token’s projected price trajectory.
AVAX sees bullish sentiment in market
Currently, the cost of AVAX is higher than the upper Bollinger Band, which stands at $24.79. This indicates that AVAX is trading beyond its usual range of price changes, suggesting a strong bullish trend in the market. However, being above the upper band could mean that the prices have extended too far and might be preparing for a correction or consolidation unless further supported by increased buying activity.
In simpler terms, the Relative Strength Index (RSI) for AVAX stands at 61.47, which means it’s slightly above the neutral zone but significantly below the overbought limit of 70. This suggests that although the market is showing some bullish trends, it hasn’t reached a level that usually predicts an immediate reversal due to excessive buying.
1. The high trading volume of 1.072 million AVAX indicates an active involvement in the market, which supports the current price surge and hints at genuine market interest rather than a false price spike. With the price breaking through the upper Bollinger Band along with a moderately high Relative Strength Index (RSI) and strong trading volume, the market trends for AVAX suggest a robust bullish trend. However, it’s crucial to keep a close eye on potential indicators of volatility or price adjustments.
Observers like investors and traders could keep an eye on possible price trends by looking for signs of consistency above the upper boundary or potential dips towards the middle level at approximately $21.58, considering these as potential signals for future price fluctuations. They should also maintain a neutral perspective, taking into account the increased market activity.
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2024-08-23 10:34