The native token of Avalanche, AVAX, registered a strong upswing this week, suggesting that the altcoin is gaining a lot of traction at its current prices.
As of this writing, AVAX is trading at $19.95, up 1.9% in the last seven days, data from Coingecko show, Friday.
The token’s market value grew by more than 4 percent in the preceding 24 hours and by more than 11 percent on Tuesday, a swift comeback from its bearish performance over the weekend.
Suggested Reading | CEL Token Price Plummets 50% As Celsius Goes Bankrupt
AVAX Token Enjoying Decent Accumulation
Trade volume increased by 73 percent during intraday trading. This indicates that the token is now being acquired and that buyers are actively trading AVAX.
The most recent increase in AVAX’s price happened after the stock retested its June support levels. This result is consistent with AVAX’s fluctuating price behavior since it broke out of its wedge shape.
Image: The Coin Republic
If this performance continues over the following two weeks, a minor uptick can be anticipated before resistance materializes.
The AVAX price has transformed the $18.26 barrier into a support base, together with the 50 and 200 Exponential Moving Averages. These factors are crucial for determining the future direction of Avalanche.
Avalanche Seen Retesting $21 Level
Provided the price of the token bounces off this level, investors can anticipate a 10% increase to retest the 200 four-hour moving average at $20.01. If buyers persist and overcome the aforementioned level, Avalanche will retest the $21.47 barrier.
AVAX reached a low of $16.37 on Wednesday before the bulls reclaimed the driver’s seat. The token traded around $18.20 on the day after facing some resistance because of sale pressure close to the 50 percent level of the relative strength index.
The token traded around $18.20 on the day after facing some resistance because of sale pressure close to the 50 percent level of the relative strength index. Since Wednesday, the Money Flow Index (MFI) for the altcoin has indicated substantial accumulation.
AVAX total market cap at $5.6 billion on the daily chart | Source: TradingView.com
Avalanche TVL In DeFi Increases
Meanwhile, Avalanche’s Total Value Locked for the second quarter decreased by almost 70% in USD terms quarter-over-quarter, although the amount of AVAX locked in DeFi grew.
Suggested Reading | Loopring Wobbles In Last 2 Months – Can LRC Stay In The Loop?
Recent market volatility has not affected the network’s health, as network staking and decentralization have remained robust throughout the bear market.
AVAX provides many advantages on the on-chain side of things as well. For instance, its supply held by whales increased substantially from its monthly low of 43.55 percent on Thursday to its monthly high of 43.89 percent on Friday.
After experiencing remarkable growth beginning in 2021, the Avalanche network’s usage numbers stabilized and its financial performance improved in the first quarter of this year.
Several significant milestones contributed to the results of the first quarter, including the execution of growth plans, subnet development, and ecosystem expansion. The outlook for Q2 2022 is optimistic, and strong momentum is anticipated to continue.
Featured image from Fintechs.fi, chart from TradingView.com