- Avalanche price surged by approximately 33% in August, upholding an uptrend ignited in June.
- The growing NFT volume has much to do with AVAX's bullish price action.
- Short position liquidations on the Ethereum competitor hit $2.01 million across all derivatives exchanges as Avalanche price tagged $30.00.
Avalanche price continued with its consistent winning streak in August's first and second weeks. After a 33.13% move, AVAX dodders within a whisker of $30.00. From both a technical and fundamental perspective, Avalanche price is unlikely to end its uptrend at the highlighted resistance.
Avalanche price recovery driven by rising NFT volumes
The substantial growth in Avalanche-based non-fungible tokens (NFTs) is one of the main fundamental factors pushing Avalanche price higher. Data from CryptoSlam shows that related volumes grew by 30.90% over the last 24 hours. The sum of all the sales made rose by 12% from 125 to 140 in the same period.
Navy Seal, the largest Avalanche-based NFT collection, saw its trading volume jump 62.7%. NFT collections such as Pizza Fame Chefs and Avepepes have also performed well.
The Futures data from Coinglass revealed that investors in short positions suffered massive liquidations as Avalanche price climbed to $30.00. Approximately $2.01 million in short positions have been liquidated over the last 24 hours. On the other hand, long trades worth $734,760 were liquidated within the same period.
Avalanche price liquidations
Avalanche price needs to break above the seller concentration at $30.00 to affirm the bullish grip. A buy signal from the Moving Average Convergence Divergence (MACD) on the daily chart reveals that buyers have the upper hand. The next targets on the upside lie at $42.00 and $50.00, respectively.
AVA/USD Daily Chart
If the much-awaited break above $30.00 does not materialize, Avalanche price might suffer a blow as it corrects south. The ascending accelerated trend line (broken line) is in place to prevent the down leg from stretching to the primary trend line (continues line). Fortifying the second support area is the 50-day SMA. Avalanche price is not expected to pull back beyond $20.00 before a significant trend reversal occurs.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.