Avalanche Surges 5% as Ethereum Bridge Value Exceeds $250 Million
A DeFi token known as Avalanche (AVAX) saw a 5% increase in value early on Monday, with a significant wallet holder, QCP Capital, withdrawing AVAX from exchange wallets. Avalanche has successfully bridged over $230 million in value from the second-largest cryptocurrency chain, Ether. The daily transactions on the Avalanche network surpassed 1.23 million, and currently, 21% of AVAX holders are experiencing profitability at the current price level. Trading at $28.75, Avalanche is poised for further gains, as traders exhibit a bullish sentiment towards the token.
The on-chain metrics for Avalanche are indicating a favorable outlook. According to data from IntoTheBlock, the sentiment among traders is described as “bullish.” The Global In/Out of the Money (GIOM) metric is utilized to assess the profitability of wallet addresses holding the asset at a specific price point. At $28.77, approximately 21.74% of wallet addresses holding Avalanche are in a profitable position. Conversely, 62.55% of wallet addresses holding AVAX at the current price are experiencing unrealized losses, potentially leading to a reduced likelihood of selling the asset. These metrics collectively support a positive outlook for Avalanche.
The utility and demand for the DeFi token are evident through the daily transactions on the Avalanche network, which reached 1.23 million on Sunday, as reported by Avascan. Additionally, data reveals that $253.11 million in value has been transferred from the Ethereum chain to Avalanche, underscoring traders’ trust in the DeFi network and their willingness to shift a substantial volume of assets to the chain, indicative of a bullish trend for long-term adoption.
In a notable move, QCP Group, a digital assets trading group based in Singapore, withdrew over 75,000 AVAX worth $2.18 million from Binance on Monday. This withdrawal has effectively reduced the supply of Avalanche on exchange wallets, potentially alleviating selling pressure on the token.
Avalanche is eyeing nearly 18% gains, with the price showing signs of an upside move based on bullish technicals. While the token experienced a downward trend following its peak on March 18, it has since reversed this trend, maintaining support above $25.53. The Moving Average Convergence Divergence (MACD) momentum indicator suggests a positive momentum for AVAX. Traders should monitor the MACD closely for any indications of a reversal, with the June 24 low of $23.51 potentially acting as a support level for AVAX.
