- The avalanche on the weekly and daily period shows its strength.
- AVAX’s on-chain data looked good.
Avalanche (AVAX) continues its expansion into traditional finance, with ParaFi Capital set to tokenize a portion of its $1.2 billion on the blockchain. This development aligns with AVAX’s growing momentum as price action shows potential for higher gains.
AVAX is currently consolidating within a falling wedge pattern on the daily chart, which began after the previous bull cycle ended in April.
Analysts are keeping a close eye on the AVAX/USDT pair, with hopes that a break above the $28 level could trigger a push towards the $50 mark. This could translate into a return on investment of over 104%.
However, failure to break above $28 could lead to a retest of the support levels at $24.9 or $17.25.
Source: TradingView
On the weekly time frame, AVAX/USDT has completed its second wave of correction and the bullish pennant pattern has also ended.
The next move is expected to be the third wave up, potentially reaching the 0.618 to 0.786 Fibonacci zones before another correction and then a further rise.
Short-term targets are set at $61.50, medium-term targets at $103, and long-term targets at $233. This longer-term outlook suggests a bullish trend for AVAX, with significant potential for long-term gains.
Source: TradingView
Historical concentration of ownership
On-chain indicators also support a bullish outlook for Avalanche. Staked AVAX increased by 6%, DeFi total value locked (TVL) increased by 11%, and stablecoins on the Avalanche blockchain surged by 13%.
These factors reflect growing confidence in the network.
Additionally, historical ownership concentration shows minimal changes, with retail ownership increasing by 4.38% and investor ownership up 12%.
Source: IntoTheBlock
Whale ownership saw a slight decline of 6%, but the overall trend remains bullish, supported by strong price action.
Avalanche addresses by time of detention
Additionally, analysis of Avalanche tokens based on holding time reveals an increase in the number of long-term holders.
Investors who held AVAX for more than a year saw a 5% increase, while those who held between one and 12 months saw a slight decrease of 0.4%.
Day traders, while more active, hold AVAX for shorter periods of time and contribute to higher on-chain activity.
Source: IntoTheBlock
RSI is neutral
The Relative Strength Index (RSI) is showing a neutral value of 59, while the Stochastic RSI stands at 81, indicating an overbought condition.
Despite the overbought signal, this is not always a harbinger of a trend reversal. In fact, it often suggests bullish momentum for AVAX, especially when other indicators are not signaling a slowdown.
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Traders see this as an optimistic sign that AVAX price will rise.
Source: CryptoQuant
With these bullish signals on technical, on-chain, and ownership metrics, AVAX looks poised for further price increases in both the short and long term.
