The post Why Avalanche (AVAX) Could Avoid Correction and Keep Climbing appeared on BitcoinEthereumNews.com.

Avalance (AVAX), the native of the layer-1 blockchain for smart contracts, currently trades at $28.44. This price increase aligns with BeInCrypto’s previous deep-dive, which mentioned that the cryptocurrency was in line for a bounce. In today’s analysis, backed by compelling analysis, we unlock well-grounded data and explain why AVAX prices will continue to climb. Demand for Avalanche Not Caused by FOMO Avalanche is not the only altcoin that experienced a bounce in the last 24 hours. Many others in the top 20 per market capitalization did the same. However, not all cryptocurrencies will be able to sustain the price increase. But AVAX is not one of them. On-chain data provided by Santiment and IntoTheBlock give reasons for this prediction. Firstly, we considered analyzing social volume. According to Santiment, Avalanche’s social volume has reached new heights since June 27 and remains at a good height metric as of this time of writing. Social dominance measures how high low search for a cryptocurrency is. Typically, a surge in arbitrary search for an asset happens when a major development occurs. For example, Solana (SOL) experienced a hike in the metric.  However, it was fueled by the ETF filing development, indicating that participants who bought it did so due to FOMO. As a short form for Fear of Missing Out, the terminology means that the positive development triggered the demand for SOL and price increase. Avalanche Social Volume. Source: Santiment In AVAX’s case, there is nothing like that. Therefore, the increase in social volume seems organic, reflecting a sharp increase in confidence. If the reading continues to increase, AVAX may evade correction. Instead, it may experience a notable price growth than the 6.32% registered in the last 24 hours. Historical data also supports the move, as a significant spike in the metric caused the…

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Filed under: News - @ June 29, 2024 3:10 am