AVAX Shreds Market Trends with Surge to $10 Resistance Level

Social media is buzzing about Avalancheโ€™s new social platform as AVAX shoots up to $10.

Big powerful human figure in front of snowy mountain range and an Avalance logo.
Created by Gabor Kovacs from DailyCoin
  • Avalanche L1 blockchain launches a decentralized social platform.
  • $AVAX reclaims the $10 resistance for the first time since August.
  • Stars Arena has expanded to $2M TVL in just a few days since launch.

As the leading digital asset Bitcoin (BTC) continues to hold steady at the $27,750 price range, most alternative currencies are trading in phased consolidation or experiencing slight drops due to the market correction after last weekโ€™s Ether Futures ETF reveal.

However, Avalancheโ€™s AVAX unexpectedly emerged as the top gainer of the day among the TOP 20 altcoins by global market cap. The Layer-1 blockchainโ€™s native cryptocurrency restored the $10 resistance line, a price range unseen since early September.

Stars Arena to Help AVAX Reach the Stars?

Besides the bullish Ethereum Futures ETF from last week, Avalancheโ€™s Layer-1 blockchain has made an impressive breakthrough in the On-Balance-Volume (OBV). The bullish momentum and massively increased demand for AVAX come amidst the launch of Stars Arena. At press time, Avalancheโ€™s OBV on-chain metric dwells slightly below $40 million, a nearly $3 million spike since Stars Arena went live. 

Sponsored

The Web3 social platform is based on Avalancheโ€™s chain but works in a similar manner to Baseโ€™s Friend.tech. The decentralized social network allows crypto enthusiasts to purchase a stake in certain Twitter accounts and get a list of perks in return. 

As a result, Avalancheโ€™s chain has seen an inflow of 577,000 transactions. AVAX pumped to the $10 price range as Avalancheโ€™s Stars Arena Web3 platform reached the $2 million volume mark, according to DappRadar.

Putting the brand new social networkโ€™s early success into a broader perspective, Avalanche scooped a $345 million market cap increase in the last 24 hours. The Relative Strength Index (RSI) points to 33.55, a favorable setup for a bullish breakout if AVAX remains in an oversold condition.

On the Flipside

  • The real-time on-chain signals for Avalanche (AVAX) point to three bearish factors.
  • $AVAX slightly dropped in concentration, large transactions & net network growth.

Why This Matters

Decentralized social platforms have been the latest trend among Layer-1 blockchains, as seen in the instantaneous success of Baseโ€™s Friends.tech Web3 network.

Explore DailyCoinโ€™s trending crypto news:
Flurry of Friend.Tech SIM Jackings Put Users on High Alert
Flare and Avascan Launch Flarescan Ecosystem Explorer

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaลกevskis is a DailyCoin Journalist, covering memecoins & latest developments. Tadas has moderate holdings in SHIB, HBAR, LTC, MATIC and a selection of low-cap meme currencies.

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