Will Avalanche (AVAX) Price Rise Any Further in August 2024?

Avalanche (AVAX) has erased almost all the losses it had incurred during the global market rout earlier in August 2024. Since its Aug. 5 low of around $17.45, AVAX’s price has rebounded by over 52.50%. Now, certain technical and on-chain indicators hint at a further AVAX rally.

AVAX Enters Critical Breakout Stage

AVAX has been trading within a descending channel pattern since March 2024. On Aug. 23, the Avalanche crypto broke above the channel’s upper trendline with rising volumes, indicating traders’ conviction in a continued breakout trend further in the month.

If this bullish breakout holds, the next target for AVAX appears to be the 200-day Exponential Moving Average (EMA), which currently hovers near $30.30, up 15% from the current price levels.

The EMA served as an upside target during AVAX’s fake breakout in July, showing that it is a critical indicator of long-term trends. A successful close above this level could solidify AVAX’s bullish outlook.

That is further indicated by AVAX’s daily relative strength index reading at 67.72, showing that the cryptocurrency has enough momentum left to continue its uptrend — at least until the RSI hits the overbought reading of 70.

Avalanche On-Chain Indicator Shows Heightened Demand

Avalanche’s improving fundamentals further support the bullish technical setup. The second chart highlights the significant increase in Avalanche’s Total Value Locked (TVL), rising steadily throughout the year. A growing TVL typically reflects increased usage and confidence in the network, which can drive demand for the native AVAX token.

This rise in TVL suggests that more capital flows into Avalanche’s ecosystem, possibly due to new projects, partnerships, or increased activity in decentralized finance (DeFi) applications built on the platform. The upward trend in TVL is a positive signal for AVAX, potentially fueling its ongoing price recovery.

Avalanche Fundamental Analysis: Grayscale’s AVAX Trust, Token Unlock, and More

Recent positive developments may contribute to the sharp rise in Avalanche’s price. Investors have recently turned their attention to the AVAX token unlock schedule, noting a reduction in token unlock events after the end of 2024.

Many investors view these unlocks as a source of sell pressure, which can stifle long-term ecosystem growth and token value appreciation.

After 2024 only #Avalanche Foundation will unlock tokens. All other unlocks will be done.

On-chain unlocks are much more transparent than other foundations random token sales#AVAX Foundation unlocks have set dates and is on-chain, it’s predictable and everyone can plan for it.… pic.twitter.com/DtsJnH3ElC

— REKTBuildr 🔺🔺🔺 (@rektbuildr) February 22, 2024

In addition, on Aug. 22, Grayscale Investments announced the launch of a new investment vehicle, the “Grayscale Avalanche Trust,” which will expose institutional investors to Avalanche’s expanding ecosystem. This move is expected to attract more capital into the network, further strengthening its market position.

On the same day, Franklin Templeton, a global asset management giant, revealed that it had expanded its Franklin Onchain US Government Money Fund to include the Avalanche network.

Together, these developments are helping to fuel investor optimism, potentially driving further gains in AVAX’s price.