- AVAX’s breakout from a long-term downtrend underlined potential for a rally beyond the $45 resistance zone
- Active addresses surged by 28.56%, reinforcing bullish network activity trends
As a seasoned researcher with years of experience in the crypto market under my belt, I must admit that Avalanche (AVAX) has piqued my interest once again. The recent breakout from a long-term downtrend and the surge in active addresses have caught my attention like a moth to a flame.
momentarily, there was positive development for Avalanche (AVAX) as it managed to break free from a prolonged descending pattern on the graphs. At the time of writing, AVAX was being traded at $38.81 with a 24-hour trading volume of $1.78 billion and a market cap of $15.87 billion. However, despite a 14.27% decrease in the last day, it showed an increase of 11.27% over the weekly charts, indicating continuous bullish sentiments.
It appeared as if the altcoin was testing the $38.57 region as a potential support, a crucial point that might influence its upcoming action. If this test is successful, it could trigger another surge since AVAX is approaching more challenging resistance levels.
Key levels to watch for support and resistance
In simpler terms, AVAX has recently burst free from a prolonged downward pattern that had been present since late 2022 and continued into early 2023. This breakout in mid-2023 indicates a shift from the previous bearish trend, suggesting that AVAX might be preparing for an upward trend instead.
Previously, the price of $38.57 functioned as a significant barrier during past trends, preventing an upward movement. If this level is maintained now, it would indicate a continuation of bullish momentum and potentially pave the way for another attempt to surpass the resistance range of $45.42 to $47.81.
Previously, this price range has failed to rise in July 2023 and February 2024, making it an important area to keep an eye on. If the price goes beyond this zone, the next potential goal would be $65.00 – A significant barrier that might draw substantial buying energy.
If the price of AVAX doesn’t hold above $38.57, it might drop to its backup support level at $32.66 instead.
On-chain activity shows growing adoption
The activity level within the Avalanche network increased significantly, as indicated by on-chain statistics. Specifically, IntoTheBlock’s data shows an increase of approximately 60,460 active addresses, which represents a jump of 28.56% compared to the previous week.
Furthermore, approximately 11,980 new addresses joined the ecosystem during that timeframe, indicating growing involvement.
The data indicates a rising curiosity towards Avalanche, possibly connected to its latest price fluctuations and advancements within its network.
Engaging in a hike symbolizes regular use of a healthy network, which could indicate that Avalanche (AVAX) has the capacity to continue its growth trend as long as market conditions remain advantageous.
Avalanche’s ecosystem metrics
The activity within Avalanche’s decentralized finance (DeFi) system appears to be maintaining momentum, with DefiLlama reporting that the network’s total value locked (TVL) reached a peak of $1.362 billion. However, it’s important to note that there was a 8.22% drop in the past 24 hours.
The market capitalization of Avalanche’s stablecoin was $1.961 billion, and its daily fees and revenue were reported at $92,555. Over the past 24 hours, the Avalanche network handled a trading volume of approximately $499.98 million, with inflows of about $7.81 million, suggesting consistent on-chain activity.
The merged data, along with the increase in active addresses, implies that Avalanche’s system is staying strong even amid temporary changes in price. Given several optimistic signals, investors might keep a close eye on these significant points and network activity while AVAX moves into its next stage, paying attention to both price movements and on-chain activities.
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2024-11-27 11:03