Coinspeaker
AVAX Continues 2-Week Surge Momentum as Price Gains Another 12% in 24 Hours
The native token of layer-1 blockchain Avalanche, AVAX, is finally seeing some relief after nearly six months of steady decline. The token has seen a rise of over 11% in the past 24 hours and was seen trading at $25.87. This makes it one of the most performing coins in the top 100 cryptocurrencies by market capitalization.
The signs are certainly positive for AVAX, which saw its lowest value in nine months on August 5 when it sold for $17.29. While this was a flash crash that stemmed from an industry-wide one after Bitcoin corrected to $49,500 in early August, AVAX’s losses were significantly higher than most in the broader market.
However, over the past two weeks, it appears that Avalanche’s price has seen a reversal of its fortune, and a potential upward trend might already be in play.
So far, AVAX has gained nearly 50% in just two weeks, with its trading volume up 88.85% in the past day and now around $461 million. Its market capitalization also currently stands at $10.4 billion, up 11.35% on the day.
AVAX Price Surge: Sustainable or Not?
For what it’s worth, some key factors may be behind the current price movement of AVAX. Firstly, there is optimism around the Avalanche token unlock schedule. Investors are keenly focused on the fact that the frequency of token unlock events will significantly decrease after 2024. For many investors and traders, this new reality will do well, not only for the token’s value appreciation but ultimately for the growth of the ecosystem.
Also, the Avalanche network is seeing an influx of new investors. On Thursday, Grayscale Investments announced the launch of the “Grayscale Avalanche Trust”. On the same day, global asset manager Franklin Templeton also expanded its Franklin Onchain US Government Money Fund to the network. According to the firm, it arrived at the decision as a response to growing investor demand.
Although there is no telling how these developments exactly affect the intrinsic value of AVAX, it also goes without saying that they surely bring more positive sentiment around the token.
What Technical Indicators Say
Indicators like the Relative Strength Index (RSI) and the Bollinger Bands are also suggesting strong bullish signals. For instance, AVAX’s RSI currently stands at 61.47. This means that it is above the neutral zone and well away from the overbought zone of 70. The implication of this is that, for now, there should be no worries about any forms of reversal.
Also, the price of AVAX is positioned slightly above the upper Bollinger Band, which is at $24.79. So, AVAX is trading in a comfortable zone, away from the range where its price has recently fluctuated.
The trading volume surge is the final piece of this puzzle. With such massive volume, which reflects activity and investor interest, all the market dynamics around AVAX send a strong bullish signal.
AVAX Continues 2-Week Surge Momentum as Price Gains Another 12% in 24 Hours
