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- AVAX surges 10% to $43.78 despite market volatility, showcasing its resilience and investor confidence.
- Growing network activity with increased new and active addresses underscores Avalanche’s strengthening fundamental sentiment.
- Many AVAX holders are in profit, indicating strong support levels and potential for further price appreciation.
Avalanche (AVAX) has experienced a notable 10% increase, reaching a price of $43.78. This surge comes amidst a period of market volatility triggered by Bitcoin’s sudden drop below $60,000, followed by a swift recovery above $67,000.
Despite the overall decrease in trading volume by 25%, Avalanche has demonstrated resilience, with its market capitalization growing by 9% to reach $16 billion. This remarkable performance has propelled Avalanche to become the 11th-largest cryptocurrency by market capitalization. There is speculation that Avalanche could potentially enter the top ten cryptocurrencies, potentially displacing others like Shiba Inu Coin with its current market cap of $16.5 billion.
Avalanche’s recent price movements have been supported by positive developments within its ecosystem. The number of new addresses created on the Avalanche protocol has seen a noticeable uptick, indicating sustained interest in the platform within the decentralized economy. Additionally, network activity has been on the rise, with an increasing number of active addresses transacting on the blockchain.
The surge in Avalanche’s price reflects its improving fundamental sentiment, especially considering its recovery from a low of $27 in January to its current value. The recent dip in prices prompted some investors to capitalize on the opportunity to accumulate more AVAX.
With a significant portion of AVAX holders currently in profit, there is a strong support zone forming between certain price levels, indicating a reluctance to sell among these investors. This could potentially lead to further buying pressure and an upward trajectory for Avalanche in the medium term.