**Is Avalanche (AVAX) Ready for a Bullish Shift?

Avalanche** price gained 16%+ in the last week, but are positive media headlines enough to sustain the AVAX rally?
fter spending nearly six months in a downtrend, AVAX price looks to be in the early stages of a trend reversal. On Aug. 5, it traded at $17.29, its lowest price in nine months. Over the past two weeks, the altcoin has reversed course with a 45% gain to $25.25.

While AVAX’s flash crash under $18 was mirrored by most altcoins which also sharply sold off during Bitcoin’s BTC
$56,797 Aug. 18 correction to $49,500, AVAX $23.70 has been a laggard versus the wider market since topping out at $65 on March. 18.
Positive news could be partially responsible for the recent uptick in the AVAX price. This week, AVAX investors zoomed in on the Avalanche token unlock schedule and noted that a sharp reduction in the number of token unlock events occurs after the end of 2024. Many investors believe that token unlocks generate sell pressure and deter the various types of long-term ecosystem development that support value accretion to the token.

On Aug. 22, asset manager Grayscale Investments also announced the launch of a new investment fund for AVAX, the “Grayscale Avalanche Trust,” which gives investors exposure to the networks’ growing ecosystem.

On the same day, global asset management firm Franklin Templeton also expanded its Franklin Onchain US Government Money Fund to the Avalanche network. As reported by Cointelegraph, “The fund, which launched in 2021, allows institutional investors access to Franklin Templeton’s blockchain-integrated record-keeping system, Benji Investments.”

While the token unlocks and Grayscale Investments and Franklin Templeton news are not necessarily fundamentals-based developments directly related to AVAX, the boost in positive sentiment could be influencing investors' feelings about the altcoin’s price prospects.

Can AVAX jump to $30 in July? Rising trader demand says yes!

- Traders who purchased AVAX within the last 30 days have seen the highest increase among all holder categories.
Technical analysis showed that the token could see its price jump to $30.05.

- Unlike many other altcoins, Avalanche [AVAX] has been trading sideways in the last seven days. But that could be in line to change, according to AMBCrypto’s analysis.

One reason for this forecast is the observation we saw from the Addresses by Time Held. This metric shows if short-, mid, or long-term holders are buying more of a token. or doing otherwise.

It’s traders’ demand over holders faith

To achieve this, the blockchain analytic platform groups them into three. The first is Holders who have possessed the token for more than a year. Second in the group is Cruisers.

Cruisers are passive investors who have held a token between one to 12 months. Last on the list are Traders who purchased with the last 30 days.

At press time, traders had the highest increase out of the three. This implies that short-term holders are bullish on the AVAX potential.

Breakout on the cards?

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

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

In addition, the Relative Strength Index (RSI) revealed that the token had exited the oversold region it was on 4th July. RSI measures momentum.

Readings below 30.00 indicate oversold levels while reading at 70.00 or above indicate overbought levels. Therefore, the rising reading implies increasing momentum for the altcoin.