Avalanche’s native token, AVAX, has shown resilience with a 3.45% rise in the last 24 hours, driven by excitement surrounding the blockchain’s first major upgrade and a $40 million development incentive.
AVAX Price Surge
According to data from Cointelegraph Markets Pro and TradingView, AVAX broke through its 200-day exponential moving average (EMA) on Sept. 26, reaching an intraday high of $29.10. At the time of writing, the token is trading at $28.91, up 10% in the last week and 12.5% over the past 30 days.
Avalanche’s $40M Grant Program
The Avalanche Foundation has launched a $40 million grant program, dubbed Retro9000, aimed at supporting developers building on the Avalanche network ahead of the upcoming Avalanche9000 upgrade. This upgrade is set to be the blockchain’s largest since its mainnet debut in 2020, and is designed to boost scalability, enhance cost-efficiency, and improve the developer experience.
As the upgrade draws nearer, demand for AVAX is expected to rise, potentially driving the token’s price higher.
Technical Outlook and Market Activity
From a technical standpoint, AVAX is trading within a strong demand area between $27 and $28.65, which is further supported by the 200-day EMA. This buyer congestion could push AVAX’s price towards its May 2022 high of $41.78, representing a 42% potential increase from current levels.
On-chain data from IntoTheBlock reinforces the strength of this support zone, with approximately 7.7 million AVAX bought within the $27.51 to $28.44 price range.
Total Value Locked (TVL) Growth
Another factor contributing to AVAX’s bullish trend is the increase in total value locked (TVL) within the Avalanche ecosystem. According to DefiLlama, Avalanche’s TVL has grown from $717.4 million on August 5 to $1 billion currently, reflecting a 43.5% increase. This growth suggests heightened user interaction with the blockchain, further fueling demand for AVAX.
With both network activity and developer interest on the rise, the AVAX token is poised for further price gains in the coming weeks.
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