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- Avalanche’s AVAX hits a 52-week high at $26.65, outshining competitors like TRX and LINK.
- Nearly 96% of Avalanche’s transactions come from Ordinals, boosting demand and fees.
- Overbought signal and strong CMF hint at potential price correction or reversal.
Avalanche’s native cryptocurrency, AVAX, has recently seen an impressive surge, climbing 15% to a 52-week high of $26.65 and entering the top ten cryptocurrency list, according to CoinMarketCap. This remarkable growth has outpaced competitors like Tron (TRX) and Chainlink (LINK).
At press time, AVAX was trading at $25.82, boasting a market cap of $9.4 billion. This upswing represents a significant increase in value, with monthly gains exceeding 110%. The 24-hour trading volume has also risen sharply by 65%, reaching $1.2 billion.
AVAX/USD 24-hour price chart (source: CoinStats)
The Avalanche network has experienced a notable increase in activity. This uptick mirrors trends observed in networks like Polygon. A key driver of this activity is the adoption of Ordinals. Ordinals minting has been responsible for nearly 96% of the network’s total transactions over the past week. This heightened activity has increased network fees and a growing demand for AVAX, illustrating the direct correlation between network utilization and the cryptocurrency’s value.
Top #blockchains by total transactions in NovemberPolygonTronBNBChainNearCeloEthereumFantomAptosAvalancheArbitrumzkSyncStarknetVictionBaseLineaMantle pic.twitter.com/jfVwb11iWY— Coin98 Analytics (@Coin98Analytics) December 3, 2023
Moreover, several Layer-1 platforms, including Avalanche, witnessed significant growth in transaction volumes in November. Avalanche, in particular, reported a 167% month-over-month increase, with transaction volumes reaching $2.73 billion. This figure is the highest recorded for Avalanche since the previous year, highlighting its growing popularity and use.
AVAX/USD Technical Analysis
The AVAXUSD price chart’s stochastic RSI rating of 91.73 suggests that the AVAXUSD price has been in the overbought zone for an extended time. This pattern shows that a price correction or reversal is possible. If the stochastic RSI rating maintains at such high levels or continues to rise, it could suggest that the market is experiencing strong bullish momentum. However, if it begins to fall or moves into the oversold region, it could indicate a weakening of the positive trend and a possible movement toward bearish sentiment.
Furthermore, the Chaikin Money Flow (CMF) rating of 0.23 indicates considerable purchasing pressure in the AVAXUSD market. This pattern suggests that there is still some demand for AVAXUSD, which could stabilize the price and avoid a severe drop. However, as the CMF rating moves southwards, it may suggest a decline in buying demand and a potential increase in selling pressure, potentially leading to a downward price movement.
AVAX/USD 4-hour price chart (source: TradingView)
In conclusion, Avalanche’s AVAX is riding a bullish wave, hitting a 52-week high and entering the top 10 cryptos. However, caution is warranted as overbought signals and potential price corrections loom.
The post AVAX Surges to a 52-Week High: Will the Rally Continue? appeared first on Coin Edition.