Avalanche leads top 20 cryptos with 6% gain: Can AVAX hit $32?

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    Despite the price drop, bearish sentiment around AVAX increased.
    In case of a continued bull run, AVAX might reclaim $32 soon.

As a seasoned crypto investor with a knack for spotting hidden gems, I’ve been closely monitoring the market and I must say, Avalanche (AVAX) has been quite the standout performer lately. Despite the bearish sentiment around it increasing, I remain optimistic about AVAX’s potential. If the bull run continues, I believe AVAX might reclaim $32 soon.

Despite a slow market, Avalanche (AVAX) demonstrated impressive growth. In reality, AVAX led the way with significant price increases over the past 24 hours among the top 20 cryptocurrencies ranked by market cap.

Let’s have a closer look at AVAX’s state to see where it might reach if the bull trend continues. 

Avalanche beats Bitcoin, Ethereum

According to information from CoinMarketCap, there were minor increases in the value of misspelled cryptocurrencies like Bitcoin and Ethereum. However, the supporters of AVAX managed to boost its price significantly, with a rise over 6% observed within the past 24 hours.

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Presently, Avalanche is being exchanged for approximately $23.03 per unit, and its total market value exceeds $9.33 billion. This positions Avalanche as the 12th largest cryptocurrency in terms of market capitalization.

It’s worth mentioning that despite the increase in prices, there was a lack of increased optimism among traders in the market, as shown by our examination of Santiment’s data on Avalanche (AVAX), which demonstrated a decrease in overall positive sentiment.

This suggests that negative opinions about the token grew more common, yet its activity on social media platforms stayed elevated, demonstrating the token’s continued appeal within the cryptocurrency community.

Avalanche leads top 20 cryptos with 6% gain: Can AVAX hit $32?

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Nonetheless, long-term investors’ confidence in AVAX did increase over the last few weeks.

According to data from IntoTheBlock, there are more long-term AVAX investors (people who have held AVAX for over a year) compared to those who recently acquired it (AVAX holders with assets between 1 and 12 months old).

This implied that those holding the token for a longer period anticipated its price would continue increasing over the next few weeks or months.

Avalanche leads top 20 cryptos with 6% gain: Can AVAX hit $32?

Will AVAX maintain its bullish momentum? 

After considering the possibility, AMBCrypto decided to examine the on-chain statistics of Avalanche to determine if they suggest further price growth.

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Based on our examination, following a drop, the open interest for AVAX began to rise in tandem with its price. This implies that the odds of the bullish trend persisting appeared quite favorable.

Avalanche leads top 20 cryptos with 6% gain: Can AVAX hit $32?

Additionally, we noticed a decrease in demand to sell the token. By examining data from DeFiLlama, we discovered that the net flow of AVAX decreased to approximately $-2.47 million on the 7th of September.

Initially, a decrease in selling activity (negative newflow) suggests an increase in demand for buying, which could be interpreted as a positive or bullish sign.

Avalanche leads top 20 cryptos with 6% gain: Can AVAX hit $32?

Even though the whales were relatively inactive over the last few hours, it was during this time that AVAX‘s price began to rise. Upon examining Hyblock Capital’s data, it was found that the difference between Avalanche’s whale activity and retail activity (whale vs retail delta) decreased significantly from over 60 to 44.

A decrease in the given measure indicated that retail investors had a greater presence or involvement in the market compared to large-scale traders, often referred to as ‘whales’.

Avalanche leads top 20 cryptos with 6% gain: Can AVAX hit $32?

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Nonetheless, the technical indicator Relative Strength Index (RSI) registered a rise. This indicated that AVAX bulls might be able to sustain the upward momentum and push the token’s price further up.

If that occurs, AVAX could potentially reach $27 initially, and then aim for $32. However, if there’s a change in the market trend, AVAX may dip down to approximately $19.4.

Avalanche leads top 20 cryptos with 6% gain: Can AVAX hit $32?

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2024-09-09 07:04