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price increased by 16% in April, experiencing a 100% increase since the beginning of the year.
- Development activities on the Avalanche network have been increasing since April 1st.
Development activities on the Avalanche (AVAX) network are increasing! Can AVAX price reach $28 by rising further?
Avalanche Developers Building Price Rally!
Avalanche is a unique blockchain protocol with three separate blockchains: X-Chain, C-Chain, and P-Chain. While each chain operates for a different purpose, the network is optimized for improved scalability and higher transaction throughput.
In early February, Avalanche price increased by 16% despite a planned network update. Since then, development activities on the network have significantly increased. On-chain data shows that intense development activity is the main driver behind the current price rally.
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According to Santiment, Avalanche Developer Activity score increased by 38% from 105.86 to 145.80 between April 1st and April 17th. AVAX price increased by 16% during the same period.
Avalanche Network Development Activity
Investors generally see increasing development activities as a bullish signal because it shows that the team is actively working to improve the core technology. New product updates and partnerships also attract new users, which helps the underlying coin find new demand. Especially when historical trends are closely examined, an increase in development activities is often seen before Avalanche price rallies.
Therefore, if investors continue to trust the Avalanche development team, it can result in increased demand and higher prices for AVAX.
Demand Increasing in Order Books!
The excess demand in order books further confirms the bullish outlook. According to IntoTheBlock, bulls have placed orders to buy 106,000 AVAX at +/-30% price limits. However, sellers have only put 96,000 coins up for sale.
AVAX Order Book
When there is more buy orders in the order book, it means that the demand for an asset exceeds the market supply. As a result, the observed excess demand can trigger a price increase because sellers can demand higher prices from willing buyers.
In summary, the increase in development activity and excess demand in the market indicate that AVAX may experience further price gains.
AVAX Price Prediction: $28 Next Target
The following chart shows that AVAX price may face little resistance beyond the $21 level. Here, 180,000 addresses may create a challenge as they have purchased 2 million AVAX on average for $21. If this resistance is overcome, the rally can reach $28 with sufficient momentum.
AVAX Global In/Out Price Distribution
However, at that point, 345,000 addresses that paid almost $28 to buy 6.38 million coins may create a significant obstacle.
Still, if AVAX loses its current $21 support, bears may gain the upper hand. However, 180,000 addresses that have purchased 2.09 million tokens may prevent this.
If this support cannot be maintained, Avalanche price may drop further to $18. Here, 386,000 addresses holding 24 million coins are expected to provide greater support.