- AVAX saw its active addresses increase by 34.46% recently.
- Key support at $19.48 could initiate a reversal.
Avalanche (AVAX) has recently seen a resurgence in on-chain activity, which could indicate renewed investment interest in the altcoin.
AMBCrypto’s analysis of Coinglass data indicated a 34.46% increase in active AVAX addresses, indicating that more investors had started using the Avalanche network.
Source: IntoTheJacket
AVAX’s Large Transactions Are on the Rise
The increase in active addresses was also accompanied by a 9.45% growth in large transactions. This often means an increased presence of whales or institutional investors in the market.
As retail sales and whales continue to grow, this indicates that a broad range of AVAX holders are participating.
Source: IntoTheBlock
AVAX’s Long/Short ratio indicates a balanced market, with positions hovering around 50%. This balance, combined with the recent increase in on-chain activity, indicates a market at a decision point.
This point of indecision could potentially open the way to volatility if a clear trend emerges.
Source: Coinglass
AVAX Approaches Critical Support Level
AVAX price has been under pressure recently. In particular, the token was consolidating above the key support level at $19.48. Historically, this point has provided a solid base during past declines.
Source: TradingView
Setting the stage for a possible reversal of fortunes
If AVAX breaks a critical support and on-chain activity increases, a mix of events may occur. Once $19.48 holds, the price may surge to $25 and beyond.
The fact that network engagement is increasing means that there are underlying demands that can support such an eventuality.
Realistic or not, here is the market capitalization of AVAX in terms of BTC
Despite recent price struggles, the increase in on-chain activity has represented a glimmer of hope for bulls. The emergence of a support level at $19.48 will draw the line in the sand.
If this level holds and the channel’s momentum persists, AVAX could enter a trend reversal.
