The native token of the popular Layer-1 network Avalanche, AVAX, has surged to $28.44, capturing the attention of investors and analysts alike. This sharp rise is not an isolated event; several top 20 market cap projects have also experienced gains in the last 24 hours. Insights from Santiment and IntoTheBlock provide a deeper understanding of the factors driving this upward trend. Santiment’s data reveals a significant increase in Avalanche’s social volume since June 27, indicating growing interest and confidence in the token. If this momentum continues, AVAX could bypass a correction and achieve a substantial price hike, potentially surpassing the 6.32% increase seen recently.

What Drives the AVAX Surge?

Santiment’s data reveals that Avalanche’s social volume has skyrocketed since June 27, maintaining high levels at present. Social dominance, which measures the frequency of searches for a cryptocurrency, often spikes with significant developments. Currently, the organic nature of this rise indicates growing confidence. If this trend continues, AVAX could bypass a correction and achieve a substantial price hike, surpassing the 6.32% increase seen in the last 24 hours. Historical trends suggest that similar surges have previously driven the token to $36.80 on June 6.

The In/Out of the Money Around Price (IOMAP) indicator also hints at a short-term value increase for AVAX. IOMAP tracks the price ranges at which holders acquired their tokens. The data shows that 4,100 addresses purchased 2.62 million AVAX at an average price of $28.54, while 53,540 addresses acquired 1.21 million tokens at a weighted price of $27.29 during the same period.

Analyzing AVAX Charts

The daily AVAX/USD chart aligns with the on-chain analysis, backed by the Fibonacci Retracement indicator, which predicts potential price targets or reversal points. As of now, AVAX is nearing the resistance level at $28.54, corresponding to the 0.238 Fibonacci level. Additionally, the Chaikin Money Flow (CMF) has exited negative territory.

During this phase, the AVAX price could hit an initial target of $31.39 and may reach $36.01 if bulls overcome general resistance. However, this forecast could become invalid if demand for AVAX dwindles. The CMF also points out a potential downside; if it hits 0.20, the token could be overbought, driving the price down to $25.59.

Key Takeaways

• Santiment data shows a significant rise in social volume for AVAX, indicating growing interest and confidence.
• Historical trends suggest that a continuous rise in social volume could lead to substantial price increases.
• IOMAP data supports the potential for short-term gains, with significant purchase volumes at key price levels.
• The AVAX/USD chart and Fibonacci Retracement indicator align in forecasting upward movement, subject to market dynamics.

The Broader Market Context

Avalanche isn’t the only altcoin seeing a boost in the last 24 hours; several top 20 market cap projects have also experienced gains. This broader market movement suggests a renewed interest in altcoins, possibly driven by Bitcoin’s recent stability and minor gains. The cryptocurrency market is known for its interconnected nature, where the performance of major tokens like Bitcoin and Ethereum often influences the broader altcoin market.

Insights from Santiment and IntoTheBlock

Santiment’s data reveals that Avalanche’s social volume has skyrocketed since June 27, maintaining high levels at present. Social dominance, which measures the frequency of searches for a cryptocurrency, often spikes with significant developments. Currently, the organic nature of this rise indicates growing confidence. If this trend continues, AVAX could bypass a correction and achieve a substantial price hike, surpassing the 6.32% increase seen in the last 24 hours. Historical trends suggest that similar surges have previously driven the token to $36.80 on June 6.

IntoTheBlock’s data provides additional insights into the market dynamics. The In/Out of the Money Around Price (IOMAP) indicator hints at a short-term value increase for AVAX. IOMAP tracks the price ranges at which holders acquired their tokens. The data shows that 4,100 addresses purchased 2.62 million AVAX at an average price of $28.54, while 53,540 addresses acquired 1.21 million tokens at a weighted price of $27.29 during the same period.

Technical Analysis of AVAX

The daily AVAX/USD chart aligns with the on-chain analysis, backed by the Fibonacci Retracement indicator, which predicts potential price targets or reversal points. As of now, AVAX is nearing the resistance level at $28.54, corresponding to the 0.238 Fibonacci level. Additionally, the Chaikin Money Flow (CMF) has exited negative territory.

During this phase, the AVAX price could hit an initial target of $31.39 and may reach $36.01 if bulls overcome general resistance. However, this forecast could become invalid if demand for AVAX dwindles. The CMF also points out a potential downside; if it hits 0.20, the token could be overbought, driving the price down to $25.59.

Market Sentiment and Future Projections

The current market sentiment around AVAX is overwhelmingly positive, driven by the significant rise in social volume and the robust fundamentals highlighted by Santiment and IntoTheBlock. If this sentiment continues, AVAX could see further gains in the short to medium term. However, traders should remain cautious of potential overbuying scenarios that could lead to price corrections.

Conclusion

In conclusion, if social volume and market interest in AVAX continue to grow, the token could see significant price increases in the near term. However, traders should be cautious of potential overbuying scenarios that could lead to price corrections. The insights from Santiment and IntoTheBlock provide a comprehensive understanding of the factors driving AVAX’s recent surge, offering valuable information for investors and traders looking to capitalize on this upward trend.

The post first appeared on BH NEWS: AVAX Token Price Rises Sharply