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Since November 2023, Avalanche‘s (AVAX) social dominance has reached its lowest level, recorded at 0.205% according to Santiment data. This metric indicates that discussions about the token are currently minimal. However, previous instances of similar declines have been followed by significant price increases. The last time dominance was this low, the token price rose from $11.62 to $48.93 in less than two months. The question now is: Is AVAX in a prime position to surpass SOL?
AVAX and Solana Price Increases
Historically, AVAX and Solana (SOL) have been nearly level in terms of price growth. Although both prices have fallen compared to their performance in the fourth quarter of 2023, SOL has shown better performance in the first quarter of 2024.
In the last 90 days, SOL’s price has increased by 64.43%, while AVAX has recorded an 18.93% rise. However, the low social dominance could act as a catalyst for AVAX. If this occurs, the token price could rise to $50.60 within a few weeks. At the time of writing, AVAX was trading at $37.31.
Solana and AVAX Ecosystems
The Solana ecosystem has surpassed Avalanche in areas other than the value of its native tokens. For example, Solana’s top memecoin, dogwifhat (WIF), has attracted more interest compared to Avalanche’s leading Coq Inu (COQ). Price movements over the last 30 days confirm this trend.
While COQ has dropped by 34%, WIF has jumped by 37%, indicating higher interest in SOL compared to AVAX. However, this could mean that AVAX presents a better buying opportunity as lower values often indicate increased liquidity.
Meanwhile, sentiment around SOL and AVAX is also negative. AVAX has a value of -0.619, while SOL’s Weighted Sentiment is -1.023, suggesting that investors believe more in AVAX’s short-term upward projection compared to SOL.
What’s the Status of AVAX Price?
In a four-hour time frame, bulls have established support at $32.70, ensuring the price does not fall below this level. The next resistance for AVAX, having surpassed $39, is at the $40 level.
The Awesome Oscillator (AO) for AVAX is positive, indicating an increase in upward momentum. However, a red histogram bar has appeared on the AO, suggesting that the bulls may not have the strength to maintain AVAX’s acceleration.
