AVAX Surge: Institutional Buying and Rising Activity Point to Bullish Trend

AVALANCHE (AVAX)

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  • Avalanche’s institutional investors have accumulated over $110 million in AVAX, signaling long-term market confidence.
  • Rising deployed contracts and growing developer activity indicate increased interest in Avalanche’s ecosystem.
  • Buyer dominance is on the rise, strengthening the potential for a bullish trend in AVAX’s price.

Avalanche (AVAX) is making waves in the crypto market, with growing reserves, increased buyer dominance, and a sharp rise in deployed contracts signaling a potential bullish reversal. As AVAX One Treasury expands its holdings and institutional players step in, the cryptocurrency is showing signs of a robust recovery. But will these positive indicators translate into sustained momentum for the token?

Institutional Investment Fuels Long-Term Confidence

Avalanche’s market activity has been heating up, largely driven by the aggressive accumulation strategy of AVAX One Treasury. Over a period of just 18 days—from November 5th to November 23rd—the treasury amassed a staggering 9.37 million AVAX, investing more than $110 million at an average price of $11.73 per token. This strategic accumulation signals a renewed institutional interest in AVAX, offering long-term holders strong support for potential future gains.

This bullish move is especially notable amid a generally mixed performance from other altcoins. With such an aggressive purchasing spree, the AVAX One Treasury’s actions are positioning Avalanche for potentially significant upward price movements in the near term.

Rising Network Activity: A Bullish Signal for AVAX

Another indicator contributing to AVAX’s growing optimism is the sharp rise in deployed contracts across the Avalanche network. According to data from AMBCrypto, this metric typically correlates with higher developer engagement, the launch of new projects, and an overall increase in on-chain activity. Historically, such trends have preceded price surges in other cryptocurrencies, suggesting that Avalanche’s network expansion could signal strong price performance moving forward.

AVAX Contracts deployed
Source: Token metrics

With more contracts being deployed and an expanding ecosystem, Avalanche is poised for a potentially significant upside in the market. This growing network activity could be the foundation needed for a bullish price shift as the Avalanche ecosystem gains traction and developer interest intensifies.

Buyer Dominance Points to Strong Market Sentiment

The growing dominance of buyers within the AVAX market further bolsters the argument for a potential bullish trend. According to data from CryptoQuant, Futures Takers’ Cumulative Volume Delta (CVD) shows a steady rise in buyer activity over the last three days. This dominance signals a shift in market sentiment, with investors gaining confidence in AVAX’s near-term prospects.

AVAX Taker Cumulative volume delta
Source: CryptoQuant

When large buyers dominate the market, it often leads to upward price movements as demand outweighs supply. Combined with AVAX One’s strategic accumulation, this buyer-driven momentum creates a strong foundation for the token’s price to continue climbing, especially as resistance levels are tested and breached.

As Avalanche continues to see rising institutional investment, network growth, and an increasing dominance of buyers, the cryptocurrency’s bullish outlook remains intact. With these positive on-chain metrics, AVAX may be on the brink of a significant trend reversal. However, traders and investors will closely monitor the token’s price action around key support levels to confirm whether this momentum can sustain itself in the medium term.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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