- Traders who purchased AVAX in the past 30 days saw the largest increase of all holder categories.
- Technical analysis showed that the token’s price could rise to $30.05.
Unlike many other altcoins, Avalanche [AVAX] has been trading sideways for the past seven days. But that could change, according to AMBCrypto analysis.
One reason for this prediction is the observation we saw in Addresses by Time Held. This metric shows whether short, mid, or long-term holders are buying more of a token or doing something else.
It is the demand of traders over the confidence of holders
To achieve this, the blockchain analytics platform groups them into three. The first is Holders who have held the token for more than a year. The second in the group are Cruisers.
Cruisers are passive investors who have held a token for between one and twelve months. Last on the list are Traders who have bought in the last 30 days.
At the time of writing, traders had the highest rise of the three, implying that short-term holders are optimistic about AVAX potential.
Source: IntoTheBlock
If this number continues to rise, AVAX price could trade higher. At the time of writing, the price was $25.81. Can the token’s price reach $30?
One way we can predict this is by looking at the demand for the token. A metric that can provide insight into this is social dominance.
Social dominance measures the level of discussion about a token compared to other cryptocurrencies in the top 100. If social dominance drops, it means that searches and conversations related to the token are dropping.
However, an increase in the metric suggests otherwise. At the time of going to press, Santiment data showed that the dominance had increased to 0.471. This means that there was an increase in AVAX-related discussions.
Source: Santiment
Is a breakthrough possible?
From a technical perspective, the AVAX/USD daily chart showed the formation of a descending triangle. The descending triangle chart pattern appears when the price of a token makes lower highs and lower lows, and it is a bearish pattern.
However, this pattern helps to identify seller exhaustion. According to the chart below, this was the case with AVAX, where the pattern pointed to a breakout.
Additionally, the Relative Strength Index (RSI) showed that the token had exited the oversold territory it was in on July 4. RSI measures momentum.
Readings below 30.00 indicate oversold levels, while readings of 70.00 or higher indicate overbought levels. Therefore, the bullish reading implies increasing momentum for the altcoin.
Source: TradingView
Is Your Portfolio Green? Check Out the AVAX Profit Calculator
If this continues, AVAX’s short-term target could start at $30.05. That would only be the case if the bulls defend the support at $24.64.
If the market situation becomes extremely bullish, the price may rise to $36.79. However, this prediction may not come true if selling pressure occurs again.