Avalanche (AVAX) is expanding into traditional finance, with ParaFi Capital planning to tokenize a portion of its $1.2 billion assets on the blockchain. This development aligns with AVAX’s growing momentum, as price movements suggest a potential for higher gains.
Technical Analysis Signals a Bullish Outlook for AVAX
On the daily chart, AVAX is consolidating within a falling wedge pattern. Analysts believe that breaking the $28 level could push the price toward $50, representing a potential gain of over 104%.
However, if AVAX fails to break past the $28 resistance, it may retreat to lower support levels. The weekly chart shows the completion of a second correction wave and a rising flag formation. Now, analysts expect a third bullish wave that could reach the 0.618 to 0.786 Fibonacci levels.
On-Chain Metrics and Ownership Distribution
On-chain metrics also support a positive outlook for Avalanche. The amount of staked AVAX has increased by 6%, the total value locked (TVL) in DeFi has risen by 11%, and stablecoins on the Avalanche blockchain have surged by 13%. These factors reflect growing confidence in the network.
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Ownership distribution has remained relatively stable, with retail ownership rising by 4.38% and investor ownership increasing by 12%. Although whale ownership saw a minor 6% decline, the overall trend remains bullish, backed by strong price action.
Investor Behavior and RSI Indicator
An analysis of Avalanche token holding periods reveals a 5% increase among long-term holders. There is a slight decrease among those holding for one to twelve months, while daily traders remain active but hold AVAX for shorter periods, contributing to on-chain activity.
The RSI stands at 59, indicating a neutral market, while the stochastic RSI is at 81, suggesting overbought conditions. However, an overbought signal does not always indicate a reversal; if other indicators do not show bearish signs, it could suggest continued bullish momentum. This is viewed as a positive signal by traders anticipating further price increases for AVAX.
With these bullish signals, AVAX appears to be preparing for a price surge. Increased staking, rising TVL, and growing investor confidence all support an upward trend. Analysts suggest that breaking through resistance levels could result in significant gains for AVAX.
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
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