Indicators Suggest AVAX Price Could Continue Climbing

The news report from Coin World:
AVAX is the first-layer blockchain currency of Avalanche’s smart contracts, currently trading at 28.25. Why do I feel that AVAX will continue to rise and perform well in this bull market?
Avalanche’s demand is not driven by FOMO
Avalanche is not the only altcoin that has rebounded in the past 24 hours. Many other tokens in the top 20 market cap have done the same. However, not all cryptocurrencies can sustain an upward trend. But AVAX is not one of them.
Firstly, we look at social search volume. Avalanche’s social search volume has reached a new high since June 27th and remains at a healthy level as of the time of writing. Social dominance measures the search level of cryptocurrencies. Typically, when significant developments occur, random searches for assets increase.
For example, the same index for Solana (SOL) has experienced an uptrend. This was driven by the increase in the number of Solana ETF applications, indicating participants buying it out of FOMO. This means positive developments have sparked demand for SOL and led to an uptrend.
Regarding AVAX, this is not the case. Therefore, the increase in social volume seems natural, reflecting a strong rise in trust. If this index continues to rise, AVAX may avoid a pullback. Instead, it could experience a more significant uptrend than the 6.32% recorded in the past 24 hours. Historical data also supports this trend, with the token surging to 36.80 on June 6th.
Support emerging, ready for a rally?
Similar to social volume, the In/Out of the Money Around Price (IOMAP) indicator supports a higher value for AVAX in the short term. IOMAP measures the price range at which coin holders bought their tokens. Through this indicator, traders can identify support or resistance areas. The more addresses accumulated at a certain point, the more it can support or resist.
IOMAP shows that 4,100 addresses bought 2.62 million AVAX at an average price of 28.54. Meanwhile, 53,540 addresses bought 1.21 million tokens at an average of 27.29.
As those who bought at 28.54 are facing losses, those who bought at $28.54 are in profit. Therefore, the rise could support AVAX’s uptrend, potentially helping the cryptocurrency surpass the resistance at 28.54.
Buying pressure keeps it rising
The daily chart has similar views to the on-chain analysis above. Reflected in the Fibonacci retracement indicator, it determines whether the cryptocurrency will continue its current trend or reverse. It sets the price milestones to reach or levels at which a reversal can occur. As of the time of writing, AVAX is approaching the resistance level of 28.54, which is the 0.238 Fibonacci level.
Additionally, the CMF indicator has moved out of the negative zone. CMF measures cash flow. Combined with other indicators, it can show whether the trend will continue based on buying or selling pressure levels. Therefore, rising to 0.04 indicates buying of Avalanche tokens.
If this scenario continues, AVAX’s price may reach the first target of 31.39. If the bulls successfully surpass any potential resistance, AVAX may rally. However, if demand for the token declines, this prediction may fail. CMF is another factor that could drag down AVAX’s price. If CMF reaches 0.20, the cryptocurrency will be overbought. In that case, the price could fall. In extreme downside scenarios, it could drop by 23.92.
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