bullish

Rally

DeFi

Avalanche

Avalanche (AVAX) is expanding into traditional finance, with ParaFi Capital planning to tokenize a portion of its $1.2 billion assets on the blockchain. This development aligns with AVAX’s growing momentum, as price movements suggest a potential for higher gains. 
<h2 id="technical-analysis-signals-a-bullish-outlook-for-avax">Technical Analysis Signals a Bullish Outlook for AVAX</h2> 
On the daily chart, AVAX is consolidating within a falling wedge pattern. Analysts believe that breaking the $28 level could push the price toward $50, representing a potential gain of over 104%. 
However, if AVAX fails to break past the $28 resistance, it may retreat to lower support levels. The weekly chart shows the completion of a second correction wave and a rising flag formation. Now, analysts expect a third bullish wave that could reach the 0.618 to 0.786 Fibonacci levels. 
<h2 id="on-chain-metrics-and-ownership-distribution">On-Chain Metrics and Ownership Distribution</h2> 
On-chain metrics also support a positive outlook for Avalanche. The amount of staked AVAX has increased by 6%, the total value locked (TVL) in DeFi has risen by 11%, and stablecoins on the Avalanche blockchain have surged by 13%. These factors reflect growing confidence in the network. 
<img loading="lazy" loading="lazy" decoding="async" class="alignnone size-full wp-image-44532" src="https://thebitjournal.b-cdn.net/wp-content/uploads/2024/09/potential-price-surge-of-Avalanche-AVAX.-The-image-should-feature-the-AVAX-logo-with-upward-arrows-and-financial.webp" alt="Avalanche (AVAX) Gears Up for a Rally with On-Chain Data = The Bit Journal" width="1792" height="1024" title="Avalanche (AVAX) Gears Up for a Rally with On-Chain Data 18"> 
Ownership distribution has remained relatively stable, with retail ownership rising by 4.38% and investor ownership increasing by 12%. Although whale ownership saw a minor 6% decline, the overall trend remains bullish, backed by strong price action. 
<h2 id="investor-behavior-and-rsi-indicator">Investor Behavior and RSI Indicator</h2> 
An analysis of Avalanche token holding periods reveals a 5% increase among long-term holders. There is a slight decrease among those holding for one to twelve months, while daily traders remain active but hold AVAX for shorter periods, contributing to on-chain activity. 
The RSI stands at 59, indicating a neutral market, while the stochastic RSI is at 81, suggesting overbought conditions. However, an overbought signal does not always indicate a reversal; if other indicators do not show bearish signs, it could suggest continued bullish momentum. This is viewed as a positive signal by traders anticipating further price increases for AVAX. 
With these bullish signals, AVAX appears to be preparing for a price surge. Increased staking, rising TVL, and growing investor confidence all support an upward trend. Analysts suggest that breaking through resistance levels could result in significant gains for AVAX.

Avalanche (AVAX) Gears Up for a Rally with On-Chain Data

Table of Contents

The Bit Journal

Other articles published on Sep 15, 2024

Blockchain investigator ZachXBT accuses USDC issuer Circle of ‘profiting’ North Korea hackers' group

Analyst Benjamin Cowen Predicts Tough Times for Altcoins in 2024

Understanding Crypto Insurance: The Protection of Digital Assets

The Ultimate Guide to the Most Rewarding P2E Games of 2024!

Ethereum-Bitcoin Parity Hit Its Lowest Level In The Last Three And A Half Years – Here Are The La...

Bitcoin ETFs recover, MicroStrategy buys more BTC, XRP Trust launched | Weekly Recap

Join our free newsletter for daily crypto updates!