- AVAX has recently seen its active addresses increase by 34.46%.
- Key support at $19.48 could trigger a reversal.
Avalanche [AVAX] has recently seen an uptick in on-chain activity, which could indicate renewed investment interest in the altcoin.
AMBCrypto’s look at Coinglass’ data indicated a 34.46% increase in active AVAX addresses, indicating that more investors had started using the Avalanche network.
Source: IntoTheJacket
AVAX major transactions on the rise
The aforementioned increase in the number of active addresses was also accompanied by a growth of 9.45% in large transactions. This often indicates the greater presence of whales or institutional investors in the market.
As both retail sales and whale numbers continue to rise, this indicates that a wide range of AVAX holders are participating.
Source: IntoTheBlock
The AVAX Long/Short ratio indicated a balanced market, with positions ranging from around 50%. This equilibrium, coupled with the recent increase in activity in the chain, indicates that the market is at a decision point.
This point of indecision could potentially pave the way for volatility if a clear trend emerges.
Source: Coinglass
AVAX is approaching critical support level
AVAX’s share price has been under pressure recently. Notably, the token consolidated above the key support level at USD 19.48. Historically, this point has provided a solid base during previous declines.
Source: TradingView
Paving the way for a possible turnaround
One AVAX exceeds a critical support and there may be activity spikes in the chain, a mix of events may occur. Once $19.48 is locked in, the price could skyrocket to $25 and higher.
The fact that network involvement is increasing means that there are underlying requirements that can support such a capability.
Realistic or not, here is AVAX’s market cap in BTC terms
Despite the recent price struggles, increased activity within the chain provided a ray of hope for bulls. An emerging support level at $19.48 will draw the line in the sand.
Should this level persist and the momentum in the chain continue, AVAX could enter a trend reversal.