- AVAX price action has shown signs of a potential pivot to a bullish phase after months of decline
- Healthy address growth and expanding DeFi ecosystem could boost Avalanche’s potential
AVAX is one of the major altcoins that benefited this week as altcoins started to receive more attention. As a result, its bullish performance has raised hopes for a further recovery from the bearish trend that has prevailed since March.
At the time of writing, AVAX was on its fifth day in the green. In fact, this was its first significant bullish attempt in the past 4 weeks. At the time, it was valued at $23.59, which is up 19% from its weekly low.
Source: TradingView
The last time the market thought AVAX had bottomed was in June. This was followed by a 50% rally. This time, AVAX is attempting a recovery from a lower price, which could make it even more attractive. Furthermore, its RSI just crossed the 50% level, suggesting that the long-term momentum could once again be shifting in favor of the bulls.
AVAX’s $22.95 level represents a 42% discount to its year-to-date high. Buyers buying at or near the price level at press time may therefore still have a chance to make decent profits if the rally extends further. As for profitability, 3.87 million addresses (44.09%) holding AVAX were in profit after the latest rally.
On the contrary, 4.76 million addresses (54.15%) were in loss and 154,800 addresses (1.78%) were in balance.
Source: IntoTheBlock
However, even though the statistics confirm that a majority of them are in losses, they also reveal that a significant number of holders are in profit despite the recent lows.
This can be interpreted as a sign of sustained demand, even at its recent levels.
Avalanche Addresses Hit All-Time Highs
Although AVAX has been heavily discounted this year, its native blockchain Avalanche has gained traction in other areas.
The growth of addresses has been particularly positive over the years, the total number of addresses with a balance of 8.75 million addresses. That’s not all, the total number of addresses with a zero balance reached 16.7 million.
Source: IntoTheBlock
For comparison, the total number of Avalanche addresses with balance has increased by 2.22 million since the beginning of the year. In contrast, addresses without balance have only increased by 750,000 addresses.
Avalanche will maintain this positive growth trajectory with developments like the ones that follow as well. For example, Agora has just launched its stablecoin AUSD on the Avalanche network. This development underlines the growing expansion of Avalanche’s DeFi ecosystem.
Additionally, Avalanche also recently became the first blockchain to have a video game developed on its network – launching on Xbox and Playstation 5.
