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Popular Layer-1 network Avalanche’s native token AVAX is currently trading at $28.44. In today’s analysis, we examine data based on solid fundamentals. Avalanche is not the only altcoin experiencing a rise in the last 24 hours, and many projects in the top 20 by market cap have also joined this surge. Data provided by Santiment and IntoTheBlock explain the reasons for this prediction.
What’s Happening on the AVAX Front?
According to Santiment data, Avalanche’s social volume has reached new peaks since June 27 and continues to remain at a good height as of the time of writing. Social dominance measures how high the searches for a cryptocurrency are, and generally, an increase in arbitrary searches for an asset occurs with a major development.
The increase in social volume appears organic for now and reflects a sharp rise in confidence. If the reading continues to rise, AVAX may avoid a correction and instead experience a significant price increase from the 6.32% recorded in the last 24 hours. Historical data also supports this move, as a significant increase in the metric caused the token to reach $36.80 on June 6.
The In/Out of the Money Around Price (IOMAP) indicator also supports a higher value for AVAX in the short term. IOMAP measures the price ranges at which currency holders bought their tokens. IOMAP shows that 4,100 addresses bought 2.62 million AVAX at an average price of $28.54, and during this process, 53,540 addresses bought 1.21 million tokens at a weighted price of $27.29.
AVAX Chart Analysis
The AVAX/USD daily chart shares a similar view to the above on-chain analysis. The Fibonacci Retracement indicator also supports this. This data determines the price comparisons to be reached or where it might reverse. At the time of writing, AVAX is approaching the resistance at $28.54, which is the 0.238 Fib level. Additionally, the Chaikin Money Flow (CMF) has also exited the negative zone.
During this process, the AVAX price could reach the initial target of $31.39, and if the bulls manage to overcome any potential general resistance, AVAX could approach $36.01. However, this prediction could be invalidated if the demand for the token decreases. CMF highlights another factor that could negatively impact AVAX. If CMF reaches 0.20, the cryptocurrency will be subject to overbuying. In such a case, the AVAX price could drop to $25.59.
