Avalanche Token AVAX Surges 3.45% Amid Major Upgrade Announcement

AVAX Token Shows Resilience Amid Exciting Developments

In recent days, AVAX, the native token of the Avalanche ecosystem, has demonstrated notable resilience in the crypto market. With a rise of 3.45% over the past 24 hours, AVAX has garnered attention as excitement builds around the blockchain's first major upgrade.

Recent Performance Highlights

Data from Cointelegraph Markets Pro and TradingView indicates a significant milestone for AVAX. The token broke through the 200-day exponential moving average (EMA) on September 26, reaching an intraday high of $29.10. At the time of this report, the layer 1 token is trading at $28.91, marking a 10% increase over the last week and 12.5% over the past month.

Factors Behind AVAX’s Bullish Trend

Several key developments are contributing to the bullish trend of AVAX:

• Avalanche9000 Upgrade: Anticipation is building around the upcoming Avalanche9000 upgrade, which is poised to be the largest network upgrade since the blockchain's mainnet debut in September 2020.
• Surge in Network Activity: Increasing engagement within the ecosystem is fostering a robust environment for AVAX.
• Strengthening Market Structure: A favorable market structure is bolstering investor confidence.

Investment Initiatives: Retro9000 Grant Program

The Avalanche Foundation has recently announced a $40 million grant program aimed at supporting developers focused on building layer-1 blockchains on the Avalanche network. Named Retro9000, this initiative encourages developers to advance projects ahead of the Avalanche9000 upgrade, further fueling optimism around AVAX.

Technical Indicators and Market Support

From a technical standpoint, AVAX trades above a crucial demand area stretching from $27 to $28.65. This area includes the 200-day EMA, suggesting a robust support zone. The accumulation of buyers around this support level could propel AVAX towards the May 22 range high of $41.78, representing a potential 42% increase from current levels.

Onchain Data and Total Value Locked (TVL)

Support for the bullish trend is backed by on-chain data. According to DefiLlama, Avalanche's total value locked (TVL) has spiked from $717.4 million on August 5 to a current value of $1 billion, reflecting a 43.5% increase in user investment. Notably, the price of AVAX has surged by more than 50% during the same period. This rise in TVL indicates increasing interaction with the Avalanche blockchain, which typically precedes notable price increases for the AVAX token.

Final Thoughts

The developments surrounding the Avalanche9000 upgrade and the Retro9000 grant program, coupled with strong support and rising TVL, indicate a promising outlook for AVAX in the coming months. However, it’s crucial to note that this article does not offer investment advice. Every investment carries risks, and readers are encouraged to conduct their own research before making any trading decisions.