Can AVAX climb to $30 in July? Growing demand from traders says yes!

• Traders who bought AVAX in the last 30 days saw the largest increase among all holder categories.
• Technical analysis showed that the token price could surge as high as $30.05.

Unlike many other altcoins, Avalanche (AVAX) has been moving sideways over the past seven days. But that could change, according to AMBCrypto’s analysis.

One reason for this prediction is the observation we were able to make from addresses by holding duration. This metric shows whether short, medium or long term holders are buying more of a token or doing otherwise.

Traders’ demand trumps holders’ confidence

To achieve this, the blockchain analytics platform groups them into three groups. The first group includes holders who have owned the token for more than a year. The second group includes cruisers.

Cruisers are passive investors who hold a token for between one and twelve months. Last on the list are traders who bought in the last 30 days.

At press time, traders have registered the largest increase of the three. This implies that short-term holders are optimistic about AVAX’s potential.

Source: IntoTheBlock

If this figure continues to rise, the price of AVAX could increase. At the time of writing, the price was $25.81. Can the token price reach $30?

One way to predict this phenomenon is to look at the demand for the token. Social dominance is one indicator that could shed some light on this.

Social dominance measures the rate of discussions about a token relative to other cryptocurrencies in the top 100. If social dominance decreases, it means that searches and conversations related to the token are decreasing.

However, an increase in the measure suggests otherwise. At press time, Santiment data showed that dominance had increased to 0.471. This means that there has been an increase in AVAX-related discussions.

Source: Santiment

An escape in sight?

From a technical perspective, the AVAX/USD daily chart has shown the formation of a descending triangle. The descending triangle chart pattern appears when the price of a token makes lower highs and lower lows, and it is a bearish pattern.

However, this pattern does help identify seller exhaustion. According to the chart below, this was the case with AVAX, with the pattern hinting at a breakout.

Additionally, the Relative Strength Index (RSI) revealed that the token had broken out of the oversold zone it was in on July 4. RSI measures momentum.

Values ​​below 30.00 indicate oversold levels, while values ​​above or equal to 70.00 indicate overbought levels. Therefore, the rising value implies increasing momentum for the altcoin.

Source: TradingView

Is your portfolio green? Check out the AVAX Profit Calculator

If this trend continues, AVAX’s short-term target could start at $30.05. This would only be the case if the bulls defend the support at $24.64.

If the market turns extremely bullish, the price could rise to $36.79. However, this forecast may not come true if selling pressure reappears.