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AVAX returned to the brink of a key price zone after recovering from the bearish dip occasioned by its token unlock on 23rd February.
With price hovering at $40, buyers would be looking to quickly use the bullish sentiment in the market to scale this bearish hurdle.
This could yield good gains for patient traders in the medium to long term, as AVAX looks set to breakout with massive bullish momentum.
Keep Avalanche Secure, Earn AVAX
One of the primary growth drivers for AVAX has been the stake to earn initiative on the Avalanche blockchain. AVAX holders are incentivized to stake their tokens to secure the Avalanche network and receive rewards in return. AVAX holders can run an Avalanche node as a validator, stake their AVAX, and earn AVAX tokens.
With the total number of validators nearing 2,000, this is helping to further decentralize Avalanche. Validators in a Proof of Stake (PoS) system such as Avalanche help to secure the network by imposing the need to lock up value in the network in order to participate in the consensus decisions.
As validators grow, this in turn drives demand for AVAX.
Demand for AVAX Could Lead to 35% Price Pump
The Relative Strength Index (RSI) is a momentum indicator that gauges whether to accumulate or sell an asset. Readings above 50 suggest bulls have an advantage and the token is on an upward trend, while readings below 50 indicate the opposite.
With AVAX’s RSI still sitting above the neutral 50 despite the retracement on the daily timeframe, it highlights the bullish strength on AVAX. This presents a good buying opportunity once bulls flip the $43 resistance to support.
Thus, traders can enter buy positions on the close of a bullish candle above $44. With a medium to long-term aim for $60, this could produce close to 35% gains for buyers.
The positive reading of +0.16 on the Chaikin Money Flow (CMF) added to the bullish sentiment and profit opportunity on AVAX.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
