AVAX Price Soars To Highest In Nearly 2 Years, Over 80% Of Holders In Profit
March 19 2024 - 1:00PM
NEWSBTC
Avalanche (AVAX), the 10th-ranked cryptocurrency, has been on a
tear in the past week, not only emerging as the top performer among
major digital assets but also reaching its highest price point in
nearly two years. Related Reading: XRP Price On The Crosshair As
Trading Begins On US-Backed Exchange According to CoinMarketCap
data, AVAX surged by an impressive 20%, surpassing its previous
peak in May 2022 and reaching a price of $60 at the time of
writing. This remarkable rally has ignited a wave of bullish
sentiment within the crypto community. AVAX Gets Boost From Strong
Market Signals Analysts are pointing to a confluence of
on-chain activity and market signals that paint a bullish picture
for AVAX. NewsBTC’s analysis revealed a key factor: 84% of AVAX
holders are currently sitting on profits, signifying a wave of
positive sentiment within the investor community. This profitable
position fosters a more optimistic environment, potentially
attracting new buyers to the market. Source: IntoTheBlock Digging
deeper into on-chain data, market observers at NewsBTC noticed a
significant rise in large buy orders on the Avalanche network. This
trend suggests that institutional investors or whales might be
accumulating AVAX, potentially fueling the upward price movement.
The bullish momentum isn’t confined to on-chain activity. The spot
market is also exhibiting strong demand for AVAX. Coinalyze data
indicates a steady rise in the token’s Cumulative Volume Delta
(CVD) since March 17th. CVD is a metric that gauges the difference
between buying and selling volumes, and its current uptick suggests
a clear dominance of buying pressure in the spot market. Source:
Coinalyze Positive Vibes In The Air For AVAX The derivatives market
is echoing the optimism as well. Open Interest (OI) in AVAX futures
contracts has been on an upward trajectory, reflecting a growing
interest from investors looking to leverage the potential price
increase. It’s important to note that OI doesn’t necessarily
indicate a long-biased market (where more traders are betting on a
price rise), but rather highlights increased participation from
both buyers and sellers. However, the rising price alongside
surging OI suggests that buyers are currently more aggressive,
potentially leading to a breakout above resistance levels. Source:
IntoTheBlock With this bullish tailwind propelling AVAX forward,
analysts are cautiously optimistic about its future trajectory.
Some market observers are of the opinion that AVAX has the
potential to reach $70 soon. However, they acknowledge the presence
of a psychological hurdle at $70, where the price might encounter
some resistance before continuing its climb. If the bulls can
overcome this obstacle and achieve a decisive breakout, the bullish
target of $75 might be within reach. Total crypto market cap.
Chart: TradingView Looking at the potential downside risks, the
article warns of a possible rejection at $70, which could trigger a
price correction back down to $63. The report also emphasizes that
the predicted upswing might not be a linear path, with potential
price fluctuations along the way. Related Reading: Shiba Inu
Ecosystem Blooms: BONE Jumps 44% With $3 Target In Sight Avalanche
(AVAX) is experiencing a period of strong momentum, buoyed by
positive on-chain data, a surge in investor interest, and a bullish
market sentiment. While some resistance levels and potential
price corrections are to be expected, the overall outlook for AVAX
appears promising in the near future. Featured image from Pexels,
chart from TradingView
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