Key Insights:
- AVAX’s price has broken above the $27 level, signaling a potential bullish surge toward $50.
- Network transactions surged by 201%, marking Avalanche’s rapid growth in the crypto space.
- Avalanche’s role in real-world asset tokenization is expanding, with significant investments from major firms.
Avalanche’s AVAX token has recently faced a sharp correction, dipping 16% from its highest point this month, coinciding with a broader downturn in the cryptocurrency market. However, the technical outlook for the token suggests it could soon experience a significant price surge, potentially reaching $50 in the coming weeks.
On the daily chart, AVAX appears to have formed a double-bottom pattern with the support level at $15.84 and the neckline at $27. This pattern is traditionally seen as a precursor to a strong bullish move. After breaking above the $27 neckline on September 9, the price retested this level, confirming the breakout. The token is also holding above the 100-day Exponential Moving Average (EMA), which signals continued bullish momentum. If AVAX manages to maintain its position above $27, it could target a surge to $50, representing an 82% potential gain from current levels.
Rising Transactions and Network Activity Fuel Optimism
Avalanche’s blockchain has seen significant growth in transactions, with a 201% surge in activity over the past 30 days, bringing the total number of transactions to nearly 50 million. Additionally, the number of active addresses using the network has risen by 22%, highlighting increasing adoption. This rise in network usage is one of the key drivers behind the bullish sentiment surrounding AVAX.
Avalanche’s growth is also supported by its increasing role in the tokenization of real-world assets (RWA). The total value locked (TVL) in the RWA sector on Avalanche has surged by 50%, reaching $726 million. This positions Avalanche as the fourth-largest blockchain in RWA, behind Ethereum, zkSync, and Polygon. Notably, the network recently secured a partnership with Mirae Capital Management, a firm with assets exceeding $316 billion, and attracted investment from Skybridge Capital, which plans to bring $300 million in assets to the platform.
Institutional Interest in AVAX Grows
Institutional interest in AVAX is also on the rise. Several companies are accumulating AVAX tokens for their treasuries, and the Securities and Exchange Commission (SEC) is currently considering several spot AVAX Exchange-Traded Funds (ETFs). As AVAX continues to play a prominent role in decentralized finance (DeFi) and NFTs, its long-term prospects appear promising, with further institutional backing fueling its growth.
