- Summary:
- The Avalanche ecosystem has been action-packed in recently since Avalanche9000 upgrade, and AVAX price upside could just be getting started.
Avalanche (AVAX) price rose to seven-month high price of $55.48 on Wednesday, having gained 8.5 percent on the daily chart at the time of writing. The coin has risen by 134 percent in the last month, building a strong sentiment-driven traction to sustain its upside. AVAX price is favoured by the strong fundamentals around the Avalanche ecosystem, with a notable spike in DeFi performance.
On-chain data signal further upside for AVAX price
According to DeFiLlama, the Avalanche chain’s DeFi TVL grew by 11 percent in the last seven days to $1.6 billion. The last 24 hours has seen further gains, with the TVL value growing by 5.5 percent. The Avalanche DeFi ecosystem is home to major projects like Curve Finance, GMX and Aave. The rise in their TVL signals increased utility for AVAX, which is good for the price.
On-chain metrics also signify the likely continuation of the upside by AVAX price. Notably, the number of whale transactions involving the crypto coin have risen significantly in the last week. According to IntoTheBlock, the value of whale transactions stands at $2.66 billion, with transactions shooting from 597 to 1,360 during that period. Also, the number of Telegram members has risen by 0.22% in the last week, signaling rising interest in the asset.
What else is propelling AVAX?
Avalance’s rise in the current cycle began in late November after it successfully launched its Avalanche9000 upgrade on testnet. The upgrade reduces deployment costs by more than 99 percent, and is scheduled to go live on the mainnet in 2025. The improvement strengthens Avalanche significantly as an attractive platform for developers and could give it an edge over Ethereum.
Meanwhile, Avalanche is reportedly in talks with the incoming Trump administration. While details of the engagement have not been divulged, Ava Labs CEO, Emin Gün Sirer in a recent posting on X confirmed they are in talks, and urged his followers to “plan accordingly”. That has strengthened the sentiment around AVAX price and could help spur it further up.
AVAX price forecast
AVAX price pivots at $53.15. Action above that level will signal bullish control. Otherwise, the sellers will be in charge. With the bulls in control, AVAX price will likely encounter the first barrier at $55.55. However, extended control could push the price further up to test $57.00.
On the flip side, the first support could come at $51.55. A break below that mark will invalidate the upside thesis. Also, the resulting momentum could extend the decline to test $50.00.
