Avalanche price has rebounded over the past few months, rising from a low of $16.30 in June to $30 today. This rally is likely to continue in the coming days as the number of burned AVAX coins nears the 5 million mark and transaction volumes increase.
AVAX Coin Burns are Soaring
The Avalanche token has numerous bullish catalysts that will boost its price in the near term. First, the number of AVAX tokens being burned is rising and currently stands at 4.8 million. This means that the tokens will likely cross the 5 million milestone in the coming months.
At the current price, it means that the network has burned AVAX tokens worth over $144 million. These token burns come from the fact that Avalanche incinerates all the fees it makes.
Data compiled by Nansen shows that the network’s fees increased by 102% over the last 30 days to exceed $1.49 million. More data shows that the number of transactions increased by 103% to nearly 50 million, while the number of active addresses rose to 691,575.
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Avalanche price will also benefit from the upcoming Granite upgrade. This upgrade will introduce performance, scalability, and developer-focused improvements.
Some of its features are cheaper ICM verification, biometric-secured applications, faster block times, gas fee pricing, and reliable cross-chain messaging. It is common for cryptocurrencies to jump ahead of a major upgrade.
The AVAX price has other catalysts, including the growing adoption by some of the biggest companies, such as Toyota, FIFA, Mirae Asset Management, Securitize, and SkyBridge.
Additionally, treasury companies such as Skybridge, AVAX One, and Avalanche Treasury will acquire more AVAX coins. Avalanche is also raising $1 billion to buy the AVAX token. Additionally, its stablecoin supply has continued to soar and now stands at $1.8 billion.
Avalanche Price Technical Analysis
The daily chart shows that the AVAX price has been in a strong uptrend in the past few months. It has jumped from a low of $16.30 in June to $30 today.
Avalanche has moved above the 50-day and 100-day Exponential Moving Averages. It has also moved to the 38.2% Fibonacci Retracement level.
Avalanche token has formed a broadening wedge pattern, also known a a megaphone. These technicals indicate further gains in the coming weeks, potentially reaching the significant resistance at $50, which is 62% above the current level.
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