What Do Massive Transaction Volumes on Solana (SOL) and Holder Profits in Avalanche (AVAX) Mean for Crypto Investors?

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While some analysts are expecting an average Bitcoin price of at least $100,000 between 2024 and 2028, emphasizing the potential for substantial growth in the coming years, Bitcoin has recently achieved a new high for 2023, briefly surpassing $38,000. Bitcoin’s recent price surge is bouncing back from an earlier slump, hitting its highest level since May 2022. Broader implications of recent events in the crypto world include the end of Changpeng Zhao’s time at Binance and the potential for a Bitcoin ETF approval. 

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Solana (SOL) On-chain Analysis 

Non-vote transactions on the Solana Network saw a significant upward spike recently, reaching 25.65 million transactions on November 24, 2023, according to TheBlock data. 

The sharp increase in transaction volume towards the latest date suggests heightened network activity, which could be driven by increased user adoption, the launch of new applications on the network, or speculative activity. Typically, if this increase in transaction volume reflects genuine growth in the utility and adoption of the Solana network, it could be a bullish signal for the price of SOL. 

Source: TheBlock.co

Solana (SOL) Technical Analysis

Technical analysis of Solana (SOL) price action suggests a nuanced market sentiment, as indicated by a mix of signals from various technical indicators and moving average (MA) levels. The Relative Strength Index (RSI) at 54.58 indicates that Solana is neither overbought nor oversold, hovering near the midpoint, which often suggests a potential for either direction in price movement but without strong momentum. The Stochastic %K is above the midpoint at 68.02, which can signal that the market is gaining bullish momentum, as this level is traditionally seen as an indicator of buying interest. However, the Moving Average Convergence Divergence (MACD) level at 0.3448 confirms there’s a lack of strong trend in the market.

For moving averages, Solana’s 10-day Simple Moving Average (SMA) at $58.79 suggests that short-term sentiment is slightly bearish. However, the longer-term indicators are more bullish, with the 200-day SMA at $57.52. This reflects a solid support level around the 200-day average, which could act as a springboard for future price.

Solana (SOL) Price Prediction

Looking ahead with price predictions for Solana, the bullish scenario would consider the support established by the 200-day SMA level. If the bullish momentum, as suggested by the longer-term moving averages and the recent spike in transaction volumes, is indicative of growing adoption and utility, the price may test the first resistance level at $69.07. 

A strong breakout above this point could see Solana aiming for the second resistance at $77.02, and in a highly bullish market, possibly extending gains towards $93.86, taking cues from the support of the broader cryptocurrency market and increased demand for decentralized applications on the Solana network.

Conversely, in the bearish scenario, if the sell signals from the short-term 10-day SMA is indicative of a trend reversal, the price may retract towards the pivot point at $60.19. A failure to hold this level could see the price falling to test the first support level at $52.24. A breach below this support could intensify selling pressure, potentially leading to a test of the second and third support levels at $43.35 and $26.52 respectively. This could be triggered by broader market downturns, regulatory headwinds, or diminishing transaction volumes on the network, undermining the demand for Solana.

Avalanche (AVAX) On-Chain Analysis 

According to IntoTheBlock data, the on-chain metrics for Avalanche (AVAX) reveal a substantial 67% of holders currently in profit and a high concentration of 74% by large holders, suggesting potential for both stability and volatility in the price due to their market influence. The strong price correlation of 0.84 with Bitcoin indicates AVAX is likely to follow broader crypto market trends. Meanwhile, the dominance of mid-term holders (59% holding for 1-12 months) could signal a level of market steadiness. However, the significant $603.32 million in transactions over $100K in the past week highlights active interest from larger investors, which may lead to notable price movements depending on these investors’ actions, be it accumulating or profit-taking.

Avalanche (AVAX) Technical Analysis 

The technical price action for Avalanche (AVAX) presents a picture of neutrality with a slant towards caution, as most oscillators are indicating neutral sentiment. The Relative Strength Index (RSI) stands at 47.93, neither indicating overbought nor oversold conditions, which often points to a potential consolidation phase in the market. The Stochastic %K is at 45.50, aligning with the RSI to suggest a lack of clear directional momentum. However, the Commodity Channel Index (CCI) is in negative territory at -55.26, implying potential bearish undertones in the short term. The Average Directional Index (ADX) is relatively low at 27.53, reinforcing the absence of a strong trend. The MACD level, albeit slightly bullish at 0.046, is not pronounced enough to indicate a strong buying signal. These indicators collectively hint at indecision in the market, suggesting that AVAX may continue to trade within a range before establishing a defined trend.

Looking at the moving averages can give us more clues about how AVAX is behaving in the market. The short-term 10-day Simple Moving Average (SMA) is $21.22 respectively, indicating that there is some balance between buyers and sellers in the near term. The longer-term 200-day SMA is $21.22. The proximity of the 10-day and 200-day SMAs to each other also points to a constricted trading range, with the 200-day SMA likely serving as a critical juncture for bullish or bearish confirmation.

Avalanche (AVAX) Price Prediction 

In a bullish scenario for AVAX, if the market sentiment shifts positively, leading to a sustained increase in buying pressure, we would expect the price to challenge the first level of resistance at $26.48. A break above this level could open up the path towards $30.09, with the potential to reach $39.14 in a strong upside rally. The upward swing in AVAX might just be fueled by the promising developments within the Avalanche network itself.

Conversely, the bearish scenario would take shape if the market sentiment deteriorates, perhaps due to broader market sell-offs or negative news specific to Avalanche. In such a case, AVAX could retreat towards the pivot point level at $21.04, which may act as a temporary support. If this support fails to hold, the next level to watch would be at $17.42.

Wrapping It Up 

So, the crypto market’s buzzing right now with Bitcoin blasting past $38K and some are even saying it could average out at around $100K before 2028. This optimism is mirrored in the analysis of Solana (SOL) and Avalanche (AVAX), where increased transaction volumes and technical indicators suggest a cautiously optimistic outlook. All this excitement just shows how people are getting more confident about crypto and believe it’s poised for some serious growth. But the unpredictability of things like SOL and AVAX prices, as well as ever-changing investor moods, really highlights why you’ve got to do your homework before jumping into crypto. Especially because this world keeps changing with new tech discoveries, law shifts, and investor sentiment.

Disclaimer: This is a sponsored article and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.