Despite the overall subdued market conditions, Avalanche [AVAX] has shown strong performance, emerging as the top gainer among the top 20 cryptocurrencies by market capitalization in the past 24 hours.
Lets delve into the current status of AVAX to explore potential price projections if the bullish trend persists.
Avalanche Outperforms Bitcoins and Ethereums
Data from CoinMarketCap indicates that while major cryptocurrencies like Bitcoin and Ethereum saw marginal gains, AVAX experienced a significant surge of over 6% in its price within a day.
At the present moment, Avalanche is trading at $23.03 with a market cap of more than $9.33 billion, positioning it as the 12th largest cryptocurrency.
Interestingly, despite the price hike, there wasn’t a substantial increase in bullish sentiment. Analysis of Santiment’s data by CryptoCrypto revealed a decrease in AVAX’s weighted sentiment, indicating a rise in bearish sentiment. However, the social volume remained high, highlighting the token’s popularity in the crypto community.
Despite this, long-term investors’ confidence in AVAX has been increasing in recent weeks.
According to IntoTheBlock’s data, the number of long-term AVAX holders (addresses holding the asset for over a year) surpassed short-term holders (addresses holding the asset for 1-12 months), suggesting that long-term holders anticipate further price appreciation in the near future.
Can AVAX Sustain its Bullish Trend?
CryptoCrypto intends to analyze Avalanche’s on-chain metrics to assess whether there are indications of a sustained price uptrend.
Our analysis reveals that, following a decline, AVAX’s open interest has started to rise in conjunction with its price, hinting at a probable continuation of the bullish rally.
Additionally, selling pressure on the token has decreased. DeFiLlama’s data shows that AVAX’s netflows dropped to -$2.47 million on September 7th.
A negative netflow typically signifies an increase in buying pressure, a positive signal for potential price appreciation.
However, notable whale activity was lacking during the recent surge in AVAX’s price. Hyblock Capital’s data indicates a decrease in Avalanche’s whale vs. retail delta from over 60 to 44, signifying that retail investors are more actively involved in the market compared to whales.
Nevertheless, the Relative Strength Index (RSI) technical indicator has shown a rise, suggesting that AVAX bulls could maintain the upward momentum and drive the token’s price higher.
If this trend continues, AVAX could aim for $27 before potentially reaching $32. Conversely, in the event of a bearish reversal, AVAX might retract to $19.4.