According to Cointelegraph, AVAX, the native token of the Avalanche ecosystem, has shown resilience, rising 3.45% over the last 24 hours amid increasing excitement about the blockchain’s first major upgrade.
Data from Cointelegraph Markets Pro and TradingView indicates that the AVAX token broke through the 200-day exponential moving average (EMA) on Sept. 26, reaching an intraday high of $29.10. At the time of publication, the layer 1 token trades at $28.91, up 10% over the last week and 12.5% over the last 30 days.
Several factors behind AVAX’s bullishness include developments surrounding the upcoming Avalanche9000 upgrade, a surge in network activity, and a strengthening market structure. The Avalanche Foundation has announced a $40 million grant program to support developers building layer-1 blockchains on the Avalanche network. Named Retro9000, the program aims to encourage developers to build on the Avalanche network ahead of the much-anticipated Avalanche9000 upgrade. The upgrade, described as the “largest network upgrade” since the blockchain’s mainnet debut in September 2020, is set to foster scalability, enhance cost-efficiency, and increase developer experience.
From a technical perspective, AVAX trades above an important demand area stretching from $27 to $28.65, with the 200-day EMA lying within this zone, suggesting robust support on the downside. Buyer congestion around this support level is likely to propel AVAX higher, potentially rising toward the May 22 range high of $41.78, representing a 42% uptick from current levels. Onchain data from IntoTheBlock reinforces the significance of this support zone, showing that AVAX sits on relatively robust support compared to the resistance it faces in its recovery path.
Further validating the positive outlook for AVAX is the total value locked (TVL) data, reflecting growth within the project’s ecosystem. According to DefiLlama, Avalanche’s TVL has increased from $717.4 million on Aug. 5 to the current value of $1 billion, representing a 43.5% increase. The AVAX price has increased by more than 50% over the same period. This increase in TVL signifies growing user interaction with the blockchain, leading to higher demand for the AVAX token, which is usually a precursor for substantial price growth.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
