Are We on the Verge of a Rally?

• The Avalanche (AVAX) bullish trend is largely contributed by the rise of Stars Arena, a decentralized social media application, that has recorded a notable spike in transaction activity on Avalanche’s C-Chain network.
• In the past 10 days, Avalanche (AVAX) price recorded a spike of over 10 percent to trade around $10, with the daily traded average volume up 53 percent to $216 million on Thursday.

Amid heightened altcoin volatility in the past week, Avalanche (AVAX), a top-rated layer one blockchain that has gained popularity as an Ethereum-killer with more than $500 million in total value locked (TVL), has gained significant on-chain traction that has resulted in a bullish outlook.

According to the latest crypto market data provided, Avalanche (AVAX) traded around $10 during the early New York session on Thursday. As a result, AVAX holders have seen their portfolio spike by about 13.5 percent in the past two weeks after getting trapped in a 10-week consecutive falling channel.

What Aroused the Avalanche Bulls?

The rise of Avalanche (AVAX) price was not a coincidence or a stroke of luck as some would purport happens in the altcoin market. Moreover, the Avalanche network has attracted more new users during the past year as depicted by its rise in the stablecoins market capitalization which stood around $1.21 billion on Thursday. Interestingly, the number of commits in the Avalanche network has increased steadily in the past two years, thus showing a notable spike in core developments.

Some of the notable DeFi protocols using the Avalanche network include AAVE, Stargate, GMX, Benqi, Trader Joe, and Pangolin, among many others. As a blockchain with notable daily users and supports multi-chain capabilities, Avalanche has attracted more DeFi platforms from different chains seeking to scale their operations.

According to on-chain data provided by avascan, the Avalanche network has so far burned about 2.64 million AVAX through 1.03 billion transactions. Most importantly, the daily transactions on the Avalanche network suddenly took an upward trajectory at the beginning of October. Notably, the Avalanche network averaged about 800k daily transactions by has since topped more than 1.2 million

The spike in Avalanche daily transactions is most probably caused by the Stars Arena, a decentralized social media application, that has recorded a spike of more than 186 percent in daily transactions in the past 24 hours. Notably, Stars Arena has about 10k users and has reported an average trading volume of approximately $3.26 million. Notably, the Avalanche network has enjoyed more than $318 million bridged from the Ethereum ecosystem and about $121 million from Bitcoin.

AVAX Price Action

The AVAX price rally is expected to continue in the coming weeks as its open interest rises to more than $20 million. From a technical standpoint, Avalanche’s price has already bottomed out and is on the verge of a falling wedge breakout.

$AVAX is already bottomed out & is on the Verge of Falling Wedge Breakout..!!#Avalanche will Retire many People in Next Bull run 😊

Just Keep Accumulating & Hold with the Patience.#Crypto #AVAX #AVAXUSDT pic.twitter.com/APU5blGg9N

— Captain Faibik (@CryptoFaibik) October 5, 2023

According to a popular crypto analyst Captain Faibik, the altcoin is headed to hit a three-figure after it breaks above the falling logarithmic resistance trend on the weekly time frame.

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