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- AVAX has seen a decrease in TVL from the high of $12.1 Billion in December 2021 to $823 Million in April 2023.
- Technical indicators favor a consolidation in price trends. It has seen a drop of 3.5% in the ETH pair.
Avalanche is a low-cost smart contract platform for apps compatible with solidity dapps. It is a proof-of-stake blockchain with less than 2 seconds of transaction finality. It can have a very high throughput with the help of subnets and has thousands of nodes in the network. AVAX gained significant attention in the crypto market last year. It was created by a team of researchers at Cornell University.
The platform is designed to solve the scalability and security issues plaguing other blockchain platforms. The network can support multiple subnets, which helps the developers to build Dapps which can run more efficiently and securely. It also helps to integrate with other Blockchain networks. Avalanche has seen a decrease in TVL in dollars in the past few years. The total number of active addresses has seen a small drop and has reached 53711.
AVAX has a market cap of $5.9 Billion and is ranked 15th as per their market cap on CMC. The volume of asset prices has seen a drop of 26% in the intraday session. The volume-to-market cap ratio of AVAX suggests a consolidated trend in price.
Have Bulls of AVAX Given Up?
The weekly technical chart for AVAX hints toward a bearish move in price and has observed a strong bearish candle on the daily chart. It is trading near $18, dropping 1.75% in the past 24 hours. The upside trend of Avalanche could see a halt near $21. Meanwhile, in the downside trend, the bounceback can be seen near $13. The correlation with ETH and AVAX is near 0.96. It is trading near the 100 and above the 50 Daily Moving Average. The 50 DMA can act as a support in case of a downside move.
MACD of the asset price hints towards a weak downside trend. The signal line and bars of Histograms favor a bearish move in price.
Summary
Avalanche has observed a decrease in TVL over the past few years. AVAX price is currently seeing a bearish momentum but can see a new high in the future.
Technical Levels
Major Support:$15
Major Resistance:$21
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
