Avalanche remains under pressure this month after plunging by 68% from its highest level in November last year. The AVAX price has dropped to $17.95, a few points above the year-to-date low of $15.30, representing a 35% decline from its May highs.
AVAX Price is Sending Mixed Signals
The daily chart shows that the AVAX token has been in a strong downward trend in the past few months. This crash has brought it much lower than the 50-day and 100-day Exponential Moving Averages (EMA).
On the negative side, there are signs that it is forming an inverse cup-and-handle pattern, a popular bearish continuation sign. This pattern comprises a horizontal line and a rounded top. It also has a consolidation or a pullback, which is now happening.
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An inverse C&H pattern often results in a strong bearish breakdown. By subtracting the lower side of $15.30 from $26.90, you get $11.60. Subtracting this figure from $15.30 gives the target price of $3.7, much lower than the current level.
On the positive side, the AVAX price may have formed a triple-bottom pattern at $15.30 and a neckline at $26.90. If this pattern holds, it means the coin could rise to $37, which is slightly above the 50% retracement level. Such a move would signal a 105% surge from the current level.
Therefore, the key Avalanche price to watch will be at $15.30. A drop below that level will confirm the inverse cup-and-handle pattern and indicate further downside.
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Key Avalanche Metric Surges 215%
Avalanche’s fundamentals are improving. Data shows that it was the fastest-growing blockchain in terms of transactions in the last 30 days, beating popular chains like BNB and Sei.
Avalanche’s transaction count jumped by 215% in the last 30 days to over 30.45 million. BNB Chain’s count jumped by 170%, while Sei transactions rose by 150%.
Further data shows that Avalanche’s fees jumped by 69% to $825,000 as the number of transactions soared.
This growth likely happened after FIFA selected Avalanche to be the blockchain of choice for its NFT activity. It also happened as the number of stablecoin transactions on Avalanche surged by over 354% in the last 30 days to 21.3 million.
However, more stablecoin metrics were fairly weak during the month. The supply of stablecoins on Avalanche decreased by 28.4% over the last 30 days to $1.2 billion, while the number of addresses dropped by 8.8% to 216,000. The adjusted stablecoin volume declined by 40% to $20 billion.
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