Avalanche Active Addresses Drop, Will Price Follow the Same Trend?

Avalanche is a layer 1 blockchain which is one of the biggest rivals of Ethereum. It has three interpolable blockchains and also serves as a platform for Dapps. The transactions in the blockchain are verified using DAG protocols. As per the Avalanche Daily, the number of validators in the blockchain is 1289 with a staking ratio of 60.82%. Avalanche has observed a strong decline in the daily active address in the past few days. It has seen a fall from the all-time high active address of 587k to 178k.

Avalanche has been observing a surge in its social metrics. Recently, Avalanche has launched a new solution called GOGO pool which will help the developers to easily launch subnets. The pool is basically a liquid stacking protocol that reduces the cost of operating the validator’s node.

Avalanche has a market cap of $5.08 Billion and is ranked 16th in the crypto-verse. The volume of the asset price has observed a slight surge in the intraday session. The V/M ratio of AVAX suggests a consolidated trend in price.

Will AVAX Price Downtrend Continue?

Avalanche price has been observing a clear win for the Bears on the weekly technical chart. It is currently trading near the value of $15.38 with a small drop in the intraday session. The volatility of AVAX has been constant for the past 30 days. The correlation of AVAX with the ETH is 0.86. The asset price is currently consolidating near the trading range but may observe a downside trend. The downside momentum of Avalanche price may see a bounceback from $14.

Meanwhile, for the upside momentum, it can see a halt near the value of $16.5. The AVALANCHE price is trading below the 50 and 100 Daily Moving Averages with a negative crossover in the past. This can further push the AVAX price to a new low in the future.

The RSI of AVAX is near 36 suggesting its presence in the oversold zone. There is a downside slope in RSI hinting towards a bearish momentum.

Summary

Avalanche has been observing a decline in the active address over the past few days. AVAX is currently in a consolidated trend but can see a reversal in the future.

Technical Levels

Major Support:$14

Major Resistance:$16.5

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.