Rapid Increase in Avalanche Adoption by 275% - Could Boost AVAX Beyond $24?
Title:AVAX: Approaching $24 – Gauging the Breakthrough
Subtitle:Bullish intent surges, but whale convictions remained split as AVAX teeter at resistance levels
🚀 AVAX transactions skyrocket, active addresses hit a new high 🚀
Avalanche [AVAX] recorded a phenomenal 275% surge in daily transactions since May’s start. Currently, the network processes an average of 759,000 transactions per day. Additionally, monthly active addresses crossed the 2.2 million mark – a strong indicator of intensified participation encouraged by subnet deployments, DeFi traction, and gaming integrations.
💰 Bullish on AVAX? 💰
As price hovers near the Fib resistance levels of $22.5-$23.6, the question arises: will this network revival translate into gains?
Price action is contained within an ascending channel, suggesting the bullish trend remains robust. However, the Stochastic RSI has spiked above 80, hinting at an impending pause or minor retracement before potential bull runs. A decisive close above $24.1 could shift the sentiment and affirm sustained upside.
🗝️ Traders pile in 🗝️
Spot market Taker Buy Dominance has surged, signaling aggressive buying by traders. This heavy buying activity indicates an intensifying bullish momentum in real-time. If this trend continues, it could create favorable conditions for a breakout.
🎯 Whales on the fence 🎯
Large Holder Netflow revealed a +45.60% gain in 90 days, signaling sustained long-term accumulation. However, the 30-day trend shows a sharp decline of -53.31%, pointing towards recent outflows or profit-taking. This divergence highlights uncertainty among whales as AVAX approaches resistance levels, with long-term investors staying optimistic while short-term players taking profits.
💸 AVAX: Setting up for a decisive move? 💸
With speculative interest rekindling, Open Interest has climbed 11.37% to $558 million, and trading volume remains steady at $1.16 billion. The lack of extreme leverage suggests caution among traders, as they anticipate sustained upside.
Meanwhile, Binance's Liquidation Map reveals a cluster of long liquidations between $23.3 and $24.5 – the key resistance barrier. A significant break above it could ignite volatility and intensify upward momentum, but failure to clear it may trap bulls and weigh down the price.
In conclusion, Avalanche's strengthening network fundamentals set the stage for potentially bullish price action, but a breakout above the $24.1 resistance and a sustained bullish structure will depend on a combination of technical and fundamental factors such as buying pressure, positive market sentiments, and signals from higher timeframe support.
- As the DeFi space flourishes with the increased adoption of Avalanche [AVAX], some investors are turning their attention to Ethereum [ETH] for its role in decentralized finance, marking a growing interest in crypto and finance technology.
- In light of the bullish sentiment surrounding Avalanche, some speculate that the booming technology may expand beyond finance and investing, perhaps collision into other sectors that can benefit from blockchain solutions.
- With the rising popularity of Decentralized Finance (Defi) and its potential for disrupting traditional finance systems, technology-driven investors are eyeing crypto projects like Avalanche as promising investment opportunities, given their ability to revolutionize finance and creating new avenues for revenue.
