Avalanche Records Solid Recovery: Can AVAX Sustain The Tempo?
Avalanche’s native token, the AVAX, is in an upward trend this week. This shows that the struggling altcoin is on the verge of regaining its previous value.
At the time of writing, the token was trading at $19.95, a rise of 1.9% over the past week, as revealed by CoinGecko. As a result, AVAX’s market value shot up by over 4% in the past 24 hours and more than 10% on Tuesday.
The latest price performance indicates a rapid comeback from the bearish outcome of the previous week.
AVAX Token Accumulation on the Increase
The intraday trading index shows an increase in the daily transaction volume by 73%. This indicates that traders have now purchased the token and are actively trading.
Moreover, the recent increase in the price of the AVAX Token happened after it retested its last month’s support levels. The outcome aligns with AVAX’s declining price pattern since I pulled itself out of the falling wedge shape.
If the token maintains the current performance over the next two weeks, an uptick will follow. Some price resistance levels will accompany the uptick.
However, the 50 and 200 exponential moving averages have pushed the tokens’ price barriers into a support base. As a result, these variables are critical in determining the future market direction of the Avalanche network.
A Likely Retesting at $21
Should the price of the token move past the $21 mark, investors can expect a 10% price surge to retest the moving average at $20.01. However, if buyers remain to determine and overcome the said level, the token will retest the $21.47 zone.
On Wednesday, the token was at one of its lowest values, at $16.37. However, the bulls were able to take control of the situation and drive the price further up. Thus, on the same day, the AVAX trading price was hovering around $18.20 after encountering some resistance.
The selling pressure triggered the resistance at almost 50% of the relative strength index of the token.
A Surge in Avalanche TVL in DeFi
In another development, the total value locked (TVL) of the Avalanche network decreased in the second quarter of the year. The decline is close to 70% in USD value in terms of percentage. However, the amount of AVAX tokens locked in DeFi increases significantly.
Despite the broader crypto market correction, the network’s performance has not been affected much. Its DeFi and network staking services have been robust throughout the market bloodbath.
The AVAX Token comes with positive benefits on the on-chain aspect for crypto-assets. Even when the token is experiencing a monthly low, whale activities keep increasing. The whale supply keeps expanding, from a low of 43.55% on Thursday to a high of 43.89% on Friday.
After its meteoric growth at the beginning of last year, active users on the network stabilized and performance improved in Q1 of 2022.
The network has recorded several milestones, which have helped it build on its strong momentum for future gains.
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