Institutional Interest and Supply Burns Fuel Bullish Bets on AVAX and SHIB

Avalanche (AVAX) and Shiba Inu (SHIB) have emerged as prominent altcoins with strong technical and off-chain indicators suggesting potential for growth. AVAX, currently trading within a bullish symmetrical triangle pattern on the 4-hour chart, has shown resilience near its triangle support. According to market analysts, a breakout above resistance could trigger significant upward momentum. The Relative Strength Index (RSI) for AVAX is currently at 52.3 and trending northward, signaling a bullish bias in the market's technical outlook [1]. Meanwhile, the Parabolic SAR has shown dotted markers below the price, a sign typically associated with early rally conditions and reinforcing the potential for a bullish move [1].

Off-chain metrics for AVAX also support this bullish case. The Total Value Locked (TVL) in the Avalanche network has risen to $1.9 billion, a 1.8% increase over recent days, indicating heightened network activity. Decentralized exchange (DEX) trading volumes have also seen a notable rise, with a $67 million increase over the past three days, reaching $290.13 million. This surge in on-chain activity is often a precursor to price breakouts [1].

The potential catalyst for AVAX's bullish momentum could be its pending ETF approval. Grayscale's recent filing with the U.S. Securities and Exchange Commission (SEC) for an AVAX exchange-traded fund suggests growing institutional interest. If approved, the ETF could facilitate substantial capital inflows into AVAX, mirroring similar developments with other cryptocurrencies. This filing follows VanEck's earlier attempt to secure ETF approval for AVAX, highlighting a broader trend of increasing institutional demand for the asset [1].

Meanwhile, Shiba Inu (SHIB) has also caught the attention of analysts and traders. Despite a recent 3% decline in the past week, the token's burn rate has surged by over 6,260% in a single 24-hour period. According to data from Shibburn, over 4.55 million SHIB tokens were destroyed during this period, reducing the circulating supply to approximately 589.24 trillion tokens. The principle of supply and demand suggests that such a rapid reduction in supply could create upward pressure on SHIB's price, especially if demand remains stable or increases [2].

On the technical front, SHIB has been consolidating inside a symmetrical triangle since mid-July, a pattern that often precedes a breakout. Analysts suggest that a decisive close above the upper resistance line near $0.0000130 could set the stage for a potential move toward $0.0000150 and $0.0000200. Popular analyst CryptoELITES has forecasted a potential 17x price surge for SHIB, projecting a move toward the $0.0002 level—a target last considered achievable during the 2021 meme coin frenzy [2].

Current market indicators for SHIB are mixed but suggest potential for volatility. The Bollinger Bands on the 4-hour chart are tightening, signaling a potential breakout in either direction. Price currently hovers near the middle band (20-day SMA), indicating indecision among traders. The RSI remains in neutral territory, leaving room for significant moves in both directions. If the RSI pushes above 55, a bullish scenario could see SHIB reclaim key resistance levels at $0.0000128 and $0.0000135 [2].

While the broader crypto market remains volatile, the combined technical and fundamental factors suggest that AVAX and SHIB may present compelling investment opportunities for those willing to take on the inherent risks. However, potential investors should remain cautious and monitor key technical levels and market sentiment for signs of a shift in momentum.

Source:

[1] Mapping Avalanche's bullish triangle - Can ETF buzz push ... (https://ambcrypto.com/mapping-avalanches-bullish-triangle-can-etf-buzz-push-avax-past-24-8/)

[2] SHIB Burn Rate Soars 6,000%: Analyst Sees 17x Price Surge (https://finance.yahoo.com/news/shib-burn-rate-soars-6-122929904.html)