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On-chain data showed AVAX was at a point that sent its value on a 4x run.
AVAX’s price might jump to $51.45 in the short term, and could leave SOL behind.
Since November 2023, it’s the first time that Avalanche’s [AVAX] social influence has dropped to a record low of 0.205% based on Santiment’s analysis as reported by AMBCrypto.
When the metric dipped, conversations about the token in relation to the top 100 were scarce. However, history shows that when dominance reached such a low point before, the token’s price surged from $11.62 to an astonishing $48.93 within just two months.
AVAX in a perfect place to outrun SOL?
During that time, AVAX and Solana (SOL) were very close in price development. While the cost of both had decreased from their fourth quarter 2023 heights, Solana showed a slightly superior growth in the first quarter of 2024.
Over the past three quarters, the value of SOL has risen by a significant 64.43%. In contrast, AVAX experienced a more modest gain of 18.93% during this period. Yet, despite its current low popularity among social media circles, there are signs that AVAX may regain its previous allure.
If this event unfolds, the AVAX token price could potentially reach $50.60 within a short timeframe. Currently, the token is priced at $37.31 in the market. However, there are areas where the Solana ecosystem surpasses Avalanche beyond just the value of their respective native tokens.
For example, Dogawifh (WIF) holds the number one spot among memcoins on the Solana network. Conversely, Coq Inu (COQ) takes the lead on Avalanche. However, their price trends over the past 30 days have moved in contrasting directions.
The decrease in COQ‘s value by 34% was outpaced by WIF‘s increase of 37%. This suggests that there was greater demand for SOL than AVAX. However, even with this difference, AVAX could present a better buying opportunity due to its lower value, potentially attracting more traders seeking increased liquidity.
During this period, the public opinion towards SOL and AVAX was largely unfavorable. The mood indicator for AVAX stood at -0.619, while SOL’s weighted sentiment score was a more pessimistic -1.023. This indicates that investors were more optimistic about AVAX’s potential price increase in the near future compared to SOL.
No energy on ground
On the 4-hour chart, the buyers established a support level around $32.70 to prevent further price declines. Yet, the price faced resistance and halted its advance at $38.58.
Although the Awesome Oscillator (AO) showed a decrease, its positive value signified growing buying power. However, the emergence of a red histogram bar hinted that the bulls’ strength could be insufficient to maintain AVAX‘s strong upward trend.
If AVAX follows this trend, its price may fall to around $35.01 again. But if it recovers from there, it could pave the way for a potential rise of 68.62%, potentially bringing the price up to $51.45.
Realistic or not, here’s AVAX’s market cap in SOL terms
Based on our examination, it appears that the 12th ranked cryptocurrency holds promising prospects for further growth. At certain stages, it could even surpass SOL in performance.
In the long term, the tokens may move at a comparable speed, but it doesn’t necessarily follow that AVAX will reach Solana’s market capitalization.
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2024-04-22 09:11