Avalanche, the blockchain known for its unbeatable features powering decentralized applications (dApps), is on the move again, this time making a 10% run to $43.78, according to CoinGecko data. The ecosystem’s native token has steadily weathered this week’s storm, caused by Bitcoin’s sharp drop below $60,000 followed by an immediate bounce above $67,000. Avalanche price boats a 17% increase in a fortnight on top of a staggering 28% surge in 30 days.
Despite a 25% slum in the trading volume to $893 million, Avalanche market cap has grown by 9% to $16 billion, becoming the 11th largest crypto. If investor interest and risk appetite continue to grow in March, AVAX has the potential to enter the top ten, toppling Shiba Inu Coin with its $16.5 billion cap.
Avalanche Price Forecast: Are Bulls Buying The Dip?
The blockchain analytics company IntoTheBlock highlights interesting developments in the Avalanche protocol. A noticeable uptick in the number of new addresses to 14,420, underpins Avalanche’s high standing position in the dynamic decentralized economy.
Network activity has also been on the rise as indicated by the number of active addresses. These are addresses transacting on the blockchain, growing to 67,120.
Avalanche’s improving fundamental sentiment is reflected in price action, considering AVAX plunged to $27 in January compared to the current market value of $43.78.
Like many cryptos, Avalanche was caught in a tumble triggered by a surprise correction in Bitcoin price below $60,000 on Tuesday. As investors, especially leveraged traders counted losses, some capitalised on the pullback to load up more AVAX.
The rush to buy the dip injected more buying pressure into the market, encouraging an immediate trend reversal. To keep the uptrend intact, Avalanche price will be facing a litmus test at the yellow band around $45.
Stepping above that level would also mean using the red falling trending as a springboard for further gains. Trading above $45 could also trigger intense FOMO to break the $50 barrier.
A huge chunk of AVAX holders are in profit based on the price at which they invested and the token’s current market value. Approximately 87.75% of all the addresses are in profit, with those who bought AVAX at an average cost of $40.34 forming huge support in the range between $39.75 and $41.07.
This cohort of holders is unlikely to sell their AVAX, considering they have been in profit for some time. If anything, buying pressure may increase and traders DCA to maximize gains in the medium-term.
The IOMAP models reveal only smaller resistance zones (refer to the red circles on the chart). With a fresh round of buying activities, Avalanche will steady up for a breakout above $50.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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