Avalanche Witnesses Impressive 25% Price Surge in 10 Days – Is SocialFi Enthusiasm the Catalyst?
Explore Avalanche's (AVAX) 33% 10-day surge. Uncover how SocialFi & Stars Arena launch might be influencing this notable bullish momentum in the market.
Avalanche (AVAX) has experienced a remarkable upswing, surging by 33% in just a span of 10 days, prompting speculation about the influence of SocialFi excitement on this surge.
Chart by TradingView
Breaking Free from Resistance
Notably, AVAX has decisively shattered both long-term and short-term descending resistance trendlines.
While it still hovers below the formidable $12.00 long-term resistance, it has successfully overcome the $9.80 barrier.
Analyzing the daily timeframe, it becomes evident that the price had been held under a descending resistance trendline since April, with the decline hitting a low of $8.61 in September.
Shortly thereafter, the altcoin initiated an upward trajectory, eventually breaking free from the trendline in October a few days ago. This trendline had held for a significant 165 days.
SocialFi Boost and Bullish Momentum
It's worth noting that the acceleration of Avalanche's price increase coincided with the launch of Stars Arena, a SocialFi platform built on the Avalanche blockchain. Notably, Stars Arena draws inspiration from Friend.tech, a similar platform recently grappling with phishing issues.
The daily Relative Strength Index (RSI) lends support to the ongoing uptrend.
Market participants utilize the RSI as a momentum indicator to discern overbought or oversold conditions, informing their decisions on asset accumulation or divestment.
Readings above 50, especially when coupled with an upward trajectory, indicate a bullish advantage. Currently, the RSI resides above 50, steadily ascending, signaling a bullish trend.
Looking Ahead: Despite these bullish AVAX price projections, it's essential to remain vigilant. AVAX has recently lost momentum and is retracing to the $9.80 support.
