AVAX, the native token of the Avalanche ecosystem, has demonstrated remarkable resilience, rising 3.45% over the last 24 hours amid increasing excitement surrounding the blockchain’s imminent major upgrade. Data from Cointelegraph Markets Pro and TradingView reveals that the AVAX token broke through the 200-day exponential moving average (EMA) on September 26, reaching an intraday high of $29.10.
At the present time, this layer 1 token is trading at $28.91, reflecting a 10% increase over the past week and a substantial 12.5% over the last 30 days. Several factors contributing to AVAX’s bullish momentum include pivotal developments related to the forthcoming Avalanche9000 upgrade, a notable surge in network activity, and a strengthening market structure.
The Avalanche Foundation has disclosed a substantial $40 million grant program aimed at supporting developers who are building layer-1 blockchains on the Avalanche network. This initiative, dubbed Retro9000, is designed to incentivize developers to create on the Avalanche ecosystem in anticipation of the much-anticipated Avalanche9000 upgrade. The upgrade has been characterized as the “largest network enhancement” since the blockchain’s mainnet launch in September 2020, which promises to promote scalability, enhance cost-efficiency, and improve the developer experience significantly. From a technical perspective, AVAX is currently trading above a crucial demand area that ranges from $27 to $28.65, with the 200-day EMA positioned within this zone.
This indicates substantial support on the downside. The presence of buyer congestion around this support level is expected to drive AVAX higher, potentially aiming toward the range high of $41.78, recorded on May 22, suggesting a notable potential increase of 42% from current levels. On-chain data sourced from IntoTheBlock fortifies the significance of this support zone, illustrating that AVAX is resting on relatively strong support compared to the resistance it encounters in its recovery trajectory. Further affirming the optimistic outlook for AVAX is the data pertaining to total value locked (TVL), which mirrors growth within the project’s ecosystem.
According to DefiLlama, Avalanche’s TVL has surged from $717.4 million on August 5 to a current figure of $1 billion, exhibiting a spectacular 43.5% increase. Concurrently, the AVAX price has escalated by more than 50% during the same timeframe. This upward trend in TVL indicates increasing user engagement with the blockchain, subsequently leading to a heightened demand for the AVAX token, typically serving as a precursor for significant price escalation. This article does not provide investment advice or recommendations.
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