Can AVAX Sustain Its Soaring Demand Despite Bearish Challenges?

Can AVAX Sustain Its Soaring Demand Despite Bearish Challenges?

Key Insights

  • According to LunarCrush, AVAX is leading thousands of other tokens in terms of social metrics.
  • AVAX also has the highest level of network activity over the last 24 hours
  • AVAX has shown bullish performance for most of April, surpassing its major moving averages and performing strongly.
  • However, it faces resistance around $22

Several metrics can be used to identify which blockchain networks/tokens are gaining the most attention

There is no better way to identify something popular, than by how much people talk about it on the internet.

According to LunarCrush, one token takes the cake in terms of social metrics, and that token is Avalanche or AVAX.

In a tweet this week, LunarCrush drew attention to AVAX, and how the token is the first place in terms of AltRank, compared to 4,358 other cryptocurrencies across the market.

AVAX Takes Charge

According to LunarCrush, AVAX has the highest social volume and social engagement scores among these coins for the current week and the last 24 hours.

The cryptocurrency, according to the platform, had a social volume of 13,089 and 30,113,242 social engagements at the time of the tweet.

<em>Chart showing social metrics on AVAX | <span style=
Chart showing social metrics on AVAX |
Source: LunarCrush"/>

Asides from the amazing social metrics on AVAX, the cryptocurrency also has the highest level of network activity over the last 24 hours.

The daily active addresses on the chain recently reached a peak on a year-to-date (YTD) basis, over 70k, after being flat for most of March.

<em>Chart showing the rise in daily fees (green histogram) last week</em>
Chart showing the rise in daily fees (green histogram) last week

The platform's transaction count increased along with the explosion in the number of addresses. Data from Token Terminal shows that on April 11, the platform's transaction fees were at their highest level in a month.

Avalanche also released the Cortina update earlier in April, causing a skyrocket in its prices and network activity.

AVAX Price Action

Naturally, AVAX has had a pretty impressive performance among the top cryptocurrencies by market cap so far this month. It currently trades at $21.28 per coin, which is a 29.32% price increase in April alone.

More significantly, the results of LunarCrush corresponded with how it has performed throughout the previous 24 hours, during which time it has been 4% in the greens (it has also gained 16.51% over the last week)

This occurred at a time when popular currencies like Bitcoin (BTC) and Ethereum (ETH) were under considerable sale pressure (-0.58% $BTC and 0.2% $ETH respectively).

In the charts, Bitcoin is currently bullish and is even on an ascending trendline.

Chart showing AVAX's price action
Chart showing AVAX's price action

The cryptocurrency has been bullish over the better part of April, soaring above its major moving averages and doing very well for itself.

However…

Can AVAX Sustain This Bullishness?

AVAX has shown impressive performance over the past few months, with the cryptocurrency rising by 52% from $14 in early March.

However, it now seems that AVAX is facing significantly strong resistance around $22.

<em>Chart showing AVAX in an ascending triangle| <span style=
Chart showing AVAX in an ascending triangle|
Source: TradingView"/>

As illustrated above, AVAX is in an ascending triangle, with the $22 zone serving as the upper resistance of this formation.,

At the moment, AVAX is changing hands for around $21.27. However, this also means that a retest of $22 and a potential price reversal may also happen.

Investors in AVAX should also be aware that the cryptocurrency is currently overbought and faces an increasing likelihood of a price rejection at $22.

Overall, AVAX has shown great visibility and demand so far, despite the chances of short-term sell pressure if the market's broad trend continued to favour bears.

Conversely, if the market situation becomes better, AVAX could be able to cling to its recent gains. Even while recent observations indicate that the present demand may continue to support the bulls, a resumption of sell pressure cannot be ruled out.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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