Avalanche (AVAX) recently gained attention as its real-world asset (RWA) value reached an impressive $2.1 billion, reflecting a remarkable 60.47% increase over the past month. Currently, AVAX trades around $6.49, backed by a market capitalization of approximately $2.80 billion and a daily trading volume of $177 million.
In technical analysis, traders are observing a potential double-bottom formation on the 4-hour chart, indicating decreased selling pressure and the possibility of a rebound towards $7.00. The immediate support zone is between $6.35 and $6.40, which is crucial for sustaining upward movement. If AVAX manages to hold above this level, it may test resistances at $6.65 and $6.80 soon.
Whale activity adds complexity to the situation, as a notable trader, Oxadd, recently deposited over $1.1 million in AVAX on Coinbase. Such significant exchanges are often interpreted by market participants as indicators of potential selling. This comes alongside reports of another whale unstaking nearly 3 million AVAX, raising concerns about market supply.
Despite these factors, analysts like Michaël van de Poppe are optimistic. They highlight the recent growth in Avalanche's ecosystem, with stablecoin supply surging by 48% in just one week, and the expansion of BlackRock’s BUIDL fund surpassing $900 million. If the bullish momentum continues, a price target of $10.50 is within reach.
This material is informational and not financial advice.
