The Avalanche (AVAX) network is in the spotlight as recent on-chain data reveals an uptick in Total Value Locked (TVL).
The recent rise in TVL has prompted market analysts to speculate whether AVAX can reclaim the $50 price point.
Avalanche Total Value Locked Continues to Climb
A closer look at the daily price chart for AVAX indicates that the token has experienced a pullback. However, it still exceeds significant support levels, showing resilience in a turbulent market.
The one-day chart analysis shows AVAX trading below the 50-day (yellow line) moving average, which usually calls for caution among investors. A moving average is a technical indicator that investors and traders use to determine the trend direction of an asset’s price.
AVAX Price Chart. Source: Tradingview.
However, the Relative Strength Index (RSI) suggests that AVAX is neither oversold nor overbought, giving neutral signals. At present, the RSI sits at 48. RSI is a momentum indicator that measures the magnitude of recent price changes to analyze overbought or oversold conditions
Read More: How To Buy Avalanche (AVAX) and Everything You Need To Know
This steadiness in the RSI, coupled with AVAX’s position above critical support, suggests the token may be consolidating before a potential uptick.
The TVL within the Avalanche ecosystem has seen a notable increase, according to data from DeFiLlama. This metric is essential as it indicates the level of user trust and the amount of capital committed to the network’s DeFi protocols.
Avalanche Total Value Locked. Source: Defilama
An increasing TVL often precedes bullish sentiment, as it reflects a vibrant and growing ecosystem, potentially leading to higher demand for AVAX. Currently, the TVL sits at $1.164 billion. This is the highest it has been since November 10, 2023.
AVAX Price Prediction: Is $50 Next?
Moreover, the Global In/Out of the Money (GIOM) for AVAX presents an optimistic picture, with a majority of the holders ‘In the Money’ at the current price. This condition points to a strong possibility that most investors are sitting on profits, which can serve as a psychological boost, reducing the likelihood of panic selling and providing a base for future price growth.
AVAX Average Price Cost. Source: IntoTheBlock
Most ‘out of the money’ holders purchased their AVAX at $54. The current block of losing holders equates to 653,000 addresses holding 28 million AVAX. However. A Push toward $50 would see roughly a third of those holders fall back ‘into the money’ as that resistance zone begins at $48.33.
Read More: Avalanche (AVAX) Price Prediction 2024/2025/2030
Given these factors, the question isn’t just whether AVAX can reach the $50 mark again, but rather when. With a robust TVL and most investors profitable at current levels, Avalanche shows clear signs of underlying strength. The network’s sustained growth and increased value locked in its DeFi protocols add to the conviction that AVAX is setting the stage for its next significant price movement.
However, AVAX could see a 15% decrease to its next critical support zone of $39 if the turbulent market continues with uncertainty surrounding the upcoming BTC halving. Invalidating its bullish thesis.
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