Avalanche Reaches New Yearly Highs – What Does AVAX News Today Mean For HODLers?

Many crypto enthusiasts called 2023 the recovery year for most cryptocurrencies, and it seems that some cryptos are responding very late to this call, but better late than never.

AVAX is one of the latest cryptocurrencies making an astonishing recovery, besides SOL, which grabbed many traders’ attention. The interactive blockchain network showed impressive recovery motivated by the fundamentals that distinguish the Avalanche network.

After a 6-month-long slump run, AVAX news today restored faith in this interactive blockchain network, but for how long? Let’s find out.

AVAX Price Action in 2023

AVAX tokens started the year strongly and achieved a price increase from $10 to just over $20, or a 100% growth in one month. However, the prices slipped, then picked up a very brief surge in April before going on a steep decline for six months.

This slump caused many investors to lose hope on AVAX’s interactive blockchain that hosts various Web 3.0 projects, games and digital assets. The Avalanche blockchain consists of three chains: X-Chain, C-Chain and P-Chain, which trigger interactivity and interoperability with various blockchains and ecosystems.

However, increasing gaming activity on the Avalanche’s subnets seems to have paid off, attracting more crypto gamers to the platform and stimulating a price increase.

Avalanche News Today

The price uptick started 30 days ago, and exactly on 17 October, which continues until today, taking the AVAX price to new highs this year, crossing over the $21.5 threshold. 

Crypto communities and analysts are very optimistic about this price increase since they are not some hollow price surges motivated by speculations. Instead, the AVAX price today was triggered by two major factors.

Increased AVAX Gaming

The Avalance C-Chain provides an interactive environment for cross-chain interoperability, where various crypto projects and digital asset development take place.

The company released a new gaming subnet on Avalanche networks, which supplies the validating nodes for GameFi transactions and game coin processing. 

Crypto analysts reported that some of these subnets are processing more transactions than the C-Chain itself, which spurred the subnet adoption for many crypto games and projects. 

These activities were accompanied by increased burn rates, which indicates an uptick in blockchain activity because Avalanche burns all revenues coming from transaction fees. Therefore, this price increase is more likely to prevail in the long term because it is supported by major network activity rather than random price speculations.

Increased AVAX Crypto Staking

The uptick in network performance increased the Avalanche staking activities, where over 35 million tokens were staked in the last 10 days.

Many expected this price increase, besides the Avalanche cap reaching new highs of just over 7.7 billion, would drive the AVAX gas price up. However, this was not the case because the gas price jumped briefly from 30 nAVAX to 47nAVAX before settling down to previous levels.

AVAX Price Analysis

We analyse the AVAX price trend using the exponential moving average indicator, coupling it with three different time periods (10-day, 50-day and 200-day).

Starting by comparing the 10-day line with the 50-day EMA line to track short-term trends. We see below that the 10-day line was moving below the 50-day line almost throughout the whole year after Q1.

However, the price took a sharp turn towards the end of October, when the blue line moved upwards and crossed over the 50-day line. The 10-day line continues to move positively until the day of writing, hinting at a consistent market trend over the coming days.

Then, we compare the short-term EMA line with the 200-line to compare possible long-term trends. We noticed a considerable breakthrough that did not happen for over a year. The 10-day line crossed over the 200-line and keeps moving up and away as the blue line moves towards the $18, while the purple line is still at $13.

This comparison and the significant EMA line crossover indicate a possible market trend that would last for weeks if not months.

Conclusion

Cryptocurrencies are highly unpredictable and speculative. However, recent price action in the AVAX network hints at a coming bullish market.

Crypto investors tend to trust this potential because it was triggered by several factors, such as increasing GameFi activities and staking deposits that show confidence in the Avalance token to reach new highs and possibly reach $30, which was achieved 18 months ago.