While the RSI and Stochastic indicators were neutral, suggesting the market might go either way, the OBV showed a spike, signaling a bullish outlook. In addition, the Bollinger Bands indicated that the value of AVAX was in a critical zone, raising the possibility of an upward movement.
The developers behind the Avalanche (AVAX) network recently released a new upgrade called AvalancheGo@v1.8.6. That version is compatible with version 1.8.0, optional but recommended by developers.
Besides launching the above improvement, the AVAX community has recently benefited the blockchain with several positive changes. The price of AVAX was also in line with those developments, accumulating a 2% gain over the last 24 hours.
AVAX is trading at around USD 17.70 and has accumulated a 1.5% loss over the last 24 hours. While its daily trading volume is above USD 121.13 million, its market capitalization is about USD 5.23 billion, according to CoinGecko.
The developments seem promising, but nobody knows whether they may help the price start its next bullish rally.
The AVAX Community Works on Developments with Other Players
The Avalanche network has benefited from the partnership with various players in the crypto market. For example, the multi-chain layer-2 scaling solution Boba Network has helped it raise its popularity among users.
AVAX recently occupied first place on the list of top projects with the highest bullish sentiment. That news came after the recent rally in the price, suggesting a brighter outlook. That leads to thinking that the bulls might dominate the market in the short term.
Technical Analysis of the Price of AVAX
Some on-chain metrics also suggested that the price of AVAX would rise further in the coming days. For example, the development activity increased significantly over the last week, signaling the efforts to improve the network.
Although the number of NFT trades rose along with the social volume, the latter suffered a decrease afterward.
According to CryptoQuant, the Relative Strength Index (RSI) and Stochastic indicators were neutral, suggesting the market might go either way. The positive developments on the network lead to expecting AVAX to perform better in the following week.
The daily chart of the price of AVAX suggested a similar outcome, as most market indicators were favorable. The On Balance Volume (OBV) showed a spike, signaling a bullish outlook.
In addition, the Bollinger Bands (BB) indicated that the value of AVAX was in a critical zone. That situation raised the possibility of an upward movement in the short term.
However, the Chaikin Money Flow (CMF) indicator was neutral, while the exponential moving average (EMA) ribbon indicated the dominance of sellers. Those factors might cause an obstacle in the next bullish run of the AVAX token.
Investors should research AVAX or any other crypto assets before buying it to know their all-time high, behavior, and possible future price. That will help them find the most convenient investment opportunity to minimize the risk of losing money.
By Alexander Salazar
