A recent market analysis has shown that Avalanche (AVAX) cryptocurrency has seen a substantial increase in value, with a 21.93% growth observed last week. Despite indicators like the Relative Strength Index (RSI) pointing to the possibility of AVAX climbing further, a significant number of holders are already in profit. Historically, the current level of profitability has been crucial in determining the future trend of AVAX’s market value.
AVAX’s Market Momentum
Over the past days, AVAX’s price has surged from $40 to $61, while its RSI dropped from 75 to 69. This suggests that despite a slight decrease in buying pressure, the cryptocurrency’s price has managed to climb, possibly due to strong investor confidence or its recognized value. With the RSI nearing the overbought territory but still at a healthy level, there’s room for further price growth without immediate concerns of overvaluation.
The maintenance of the RSI below the overbought threshold could reflect sustained investor interest, possibly paving the way for continued appreciation in AVAX’s price. The investment community seems ready to back AVAX, with the potential for ongoing price escalations.
What the Numbers Indicate
With AVAX’s recent uptick in value, 75% of its holders, or approximately 5.6 million individuals, are currently seeing profits. This marks a departure from the past two months’ stability. Notably, a previous instance when the percentage of profitable holders reached 75% was followed by a sharp rise in AVAX’s price, suggesting a pattern that could hint toward future performance.
While 23% of holders are not yet profitable, they may hold onto their assets in anticipation of further increases. Considering AVAX remains far below its peak price, the current scenario suggests a low likelihood of mass selling by holders in the near term, indicating a potential for additional gains.