Avalanche (AVAX) has been gaining significant traction in recent weeks, riding the wave of the broader cryptocurrency market's October rally. With a market capitalization of around $13.1 billion and a daily trading volume of approximately $415 million, AVAX is currently retesting a crucial support/resistance level near $30.
Key Price Developments:
- 7% Rally: AVAX price surged over 7% in the second week of October, reaching $29.5 on Monday.
- Technical Analysis: The altcoin has successfully retested a macro breakout and respected a rising logarithmic trend. Additionally, it has rebounded from the 50-day Moving Average (MA) and potentially formed an inverted head and shoulders (H&S) pattern, coupled with a rising divergence of the Relative Strength Index (RSI).
Upcoming Events:
- AVAX Repurchase: The Avalanche Foundation's recent announcement to repurchase 1.97 million AVAX tokens from the Luna Foundation Guard (LFG) is expected to reduce selling pressure.
- Unlock Event: However, the unlocking of 700k AVAX tokens on October 21, 2024, could potentially exert downward pressure on the price in the short term.
Network Growth:
- Validator and Staking: The Avalanche network boasts a vibrant ecosystem with 1,724 validators and 247.6 million AVAX staked, representing 56.16% of the total supply.
- DeFi Activity: The network has a total value locked (TVL) of over $1 billion and a stablecoin market cap of over $2.39 billion, with prominent DeFi protocols like AAVE, LFJ, GMX, and Benqi.
Overall Outlook:
While the AVAX price faces potential short-term volatility due to the upcoming unlock event, the bullish momentum driven by technical indicators and positive network developments suggests a promising outlook for the altcoin. Investors should closely monitor these factors and consider long-term investment strategies based on their risk tolerance and market analysis.
October 2024, Cryptoniteuae