Over the weekend, Avalanche’s native token AVAX experienced a remarkable rally, breaking past the $10 mark. However, the digital asset faces formidable resistance at the $11.55 level, triggering speculation in the crypto community.
On-chain data, sourced from IntotheBlock, reveals a critical juncture in the $AVAX price range of $11.62 to $12.93, historically held by over 747,000 addresses. In bearish market conditions, these levels often serve as strong resistance zones where investors contemplate liquidating positions to minimize losses.
The recent week brought immense joy to AVAX investors, witnessing an 8% price surge. This uptick is attributed to heightened activity on the Avalanche network, particularly due to Stars Arena, which facilitated over 215,000 transactions, raking in an impressive $1.7 million, according to DappRadar.
Stars Arena, a social platform deployed on the Avalanche Contract Chain, boasts over 14,000 active wallets. Users linking their $AVAX wallets can seamlessly trade tokens, with some enthusiasts claiming it offers superior features compared to competitors. Notably, there’s no charge for accessing a public feed, distinguishing it from platforms like Friend.tech.
Optimism prevails in the community as Avalanche prices are anticipated to continue surging with successful projects on its blockchain. Speculations hint at a potential doubling of prices in the coming months, aiming to reclaim the highs witnessed in April.
As of the latest update, AVAX is trading at $9.49, displaying a slight decline on the daily chart. Weekly charts, however, showcase a modest 2% gain over the past seven days.
Avalanche Whale Transactions and Bullish Signs
This week, a significant surge in AVAX transactions supports the positive sentiment surrounding Stars Arena. Notably, AVAX whales have increased their trading activity since the platform’s launch on September 27, recording 64 whale transactions on October 4. This level of whale activity hasn’t been witnessed since around August 22, signaling growing confidence among large investors.
The historical correlation between Avalanche prices and whale transactions suggests that retail traders might soon mirror this bullish disposition. However, technical analysis warns of potential bearish resistance forming a sell-wall around the $11 region. If the bulls can overcome this hurdle, the $15 territory becomes the next plausible target, making the coming weeks crucial for AVAX enthusiasts and investors alike.
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