Why AVAX Could Reach $65 Soon

Avalanche (AVAX): Can It Surge to $65 Soon?

Avalanche (AVAX) could be on the verge of a major upward move, but several critical factors will determine its path. Recent on-chain data and whale activity suggest that AVAX may experience significant price movements in the near future. However, a clear rally has not yet been established. Let’s explore the factors influencing AVAX’s potential rise, including transaction size, whale activity, and market trends.

Surge in AVAX Transactions

AVAX has seen a noticeable spike in its average transaction size, indicating an increase in demand for the token. In the past 24 hours, the average transaction size surged to $3,687.7, with a seven-day average of $2,935.71. This suggests that traders are purchasing larger quantities of AVAX per transaction, which could drive the asset’s price higher.

• The average transaction size reached its highest point since early November.
• On December 8th, a massive spike coincided with continued price growth.
• This surge in transaction size occurred despite a slight decline in active addresses, which typically correlates with a price decrease.

This trend is especially noteworthy as it defies the typical pattern where a drop in active addresses signals a potential price decline. The increase in transaction value points to growing demand, which could fuel AVAX’s price surge.

The Role of Whale Activity

Whale activity has played a significant role in driving AVAX’s recent price movements. According to IntoTheBlock, whale activity in the AVAX market grew by 0.25% over the past 24 hours. Whales, or large investors holding at least 1% of an asset’s supply, have a significant impact on market trends. Currently, 10 whale addresses control 27.38% of the total AVAX supply.

• Whale addresses collectively own 27.38 million AVAX, a figure that has increased by 12.44% over the past week.
• Despite a slight decline in broader market participation, whale activity has maintained AVAX’s value.
• The divergence between whale activity and general market interest suggests that whales are acquiring AVAX for long-term holdings.

These whales are driving the market trends, with their actions playing a pivotal role in maintaining AVAX’s value and contributing to its recent price surge.

Can AVAX Reach $65?

At the time of writing, 81% of AVAX holders are “in the money,” meaning they are profitable based on their entry points. Only 15% of holders are “out of the money,” experiencing losses. This disparity suggests a bullish market sentiment, as a predominantly profitable market encourages further buying activity.

• The growing interest from whales and the favorable market sentiment could push AVAX past its next resistance zone, which lies between $54 and $80.
• $65 serves as a key target in this resistance zone.
• If momentum continues and “in the money” holders accumulate more AVAX, the token could potentially surpass $65.

In conclusion, whale activity and growing market interest could propel AVAX toward $65, or even higher, if current trends continue. The path to $65 depends on sustained demand, whale involvement, and overall market sentiment.