- AVAX has seen its active addresses rise by 34.46% recently.
The key support at $19.48 could initiate a reversal.
As a seasoned analyst with over two decades of experience in the crypto market, I have witnessed numerous cycles of growth and decline. The recent surge in active addresses and large transactions for AVAX is a sight that I find reminiscent of the early days of Bitcoin’s rise.
Lately, there’s been a surge in on-chain actions related to Avalanche (AVAX), suggesting that investors may be showing renewed enthusiasm for this alternative coin.
According to AMBCrypto’s analysis of Coinglass’ figures, there was a significant 34.46% increase in the number of active Avalanche (AVAX) network users, suggesting an influx of new investors choosing to engage with the Avalanche blockchain.
AVAX large transactions on the rise
Previously mentioned rise in active addresses was also coupled with an expansion of 9.45% in significant transactions, which usually implies a greater involvement of ‘whales’ or institutional investors within the market.
With retail involvement and the growth of whale activities, it suggests that a diverse group of Avalanche (AVAX) holders are actively participating.
In simpler terms, the ratio between long (buy) and short (sell) positions for AVAX is approximately equal, suggesting a market that’s evenly divided. Combined with an uptick in on-chain activity, this points to a situation where the market is at a crossroads or making a significant decision.
As a crypto investor, I find myself in a state of uncertainty right now, which could pave the way for market volatility if a definite trend starts to surface.
AVAX approaches critical support level
Lately, Avalanche’s price has faced pressure. Notably, the token has been holding steady just above a crucial support level at approximately $19.48. In the past, this area has proven to be a strong foundation during market drops.
Setting the stage for a potential reversal
If the value of one Avalanche (AVAX) coin exceeds a significant level of support and there’s an increase in on-chain activity, various outcomes might unfold. If the price remains stable at around $19.48, it could potentially soar to $25 and even higher levels.
Increased network engagement suggests there are hidden demands that could potentially lead to this outcome.
Realistic or not, here’s AVAX market cap in BTC’s terms
Despite recent difficulties with prices, an uptick in on-chain activity offers a glimmer of optimism for bullish investors. The potential support level at $19.48 could serve as a defining boundary.
Should this level hold and on-chain momentum persist, AVAX may be entering a trend reversal.
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2024-08-18 13:11