What you need to know
What are the signs that AVAX has a bullish outlook?
AVAX’s DeFi TVL reached $2 billion. Technical indicators indicate upward momentum and outflows of exchanges show accumulation.
What will determine Avalanche’s price next move?
Maintaining momentum over the resistance of $36 is key for a possible push towards $44, and failure to do so could lead to a short-term pullback.
Avalanche’s [AVAX] DeFi The total value locked (TVL has soared past $2 billion. This is the highest it has been in over two years and a sign of renewed trust in the ecosystem.
AVAX is showing significant upward momentum in the charts as buyers take control of both spot and derivatives market.
The network’s participation in trading has also been steadily expanding, supporting capital inflows as well as the activity of traders.
Avalanche’s potential for upside is supported by the combination of increasing DeFi growth, and recent technical breakouts. Bulls must maintain control above critical resistance levels.
Avalanche can it break the $36 barrier?
AVAX has recently broken above the $26,81 level. This establishes a stronger support zone, which confirms its upward trendline that began in June.
As of press time, price had tested resistance at $35.12. This is a critical level which could determine whether the upward momentum will continue or if it faces rejection.
MACD formed a bullish cross-over, supporting the argument for continued upward pressure near term.
It is likely that buyers will hold firm and move towards the $44.23 mark. If, however, the price is unable to remain above $36, then there could be a temporary pullback before bulls make another attempt at a rally.
TradingView
Spot trading volume heats up across Avalanche markets
The volume bubble chart, which shows the market’s activity in full swing, reflects a rising trend.
Bubble clusters that are larger indicate increased trading, indicating a higher level of interest by both retail traders and institutions.
The increase in Avalanche activity is a result of a long consolidation period, which suggests new liquid inflows.
The market heating signal a broader level of engagement which helps to support price discovery, and increases the likelihood for follow-through rallies.
A sustained increase in volume could be a sign of confidence for Avalanche, even though the volatility remains.
Source: CryptoQuant
The net flows of exchange reveal trends in accumulation
The most recent data shows a pattern of daily negative outflows that is consistent.
The outflows are a sign of accumulation, as the tokens have left exchanges. This reduces sell pressure while also indicating investor confidence.
It is also a reflection of the increase in TVL as Avalanche has invested more capital into its ecosystem than it does to keep liquid.
This accumulation trend provides a strong structural basis for the continuation of bullish trends. Although there may be spikes of inflows, the overall direction is one that supports the reduction in supply and reinforces the upward market outlook.
Source: CoinGlass
AVAX, are you ready to go higher?
Avalanche has multiple signs of strength. From the growth in DeFi TVL exceeding $2 billion, to solid technical setups as well as consistent outflows.
Exchange data shows that the demand for AVAX is increasing, and spot trading confirms this. These factors together support AVAX’s bullish structure.
Avalanche’s breakout is still intact, as momentum has aligned across key metrics, and the buyers have held firm.
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Source: ambcrypto.com
