AVAX price crashed below the important support at $20 even as the network’s RWA growth accelerated and crossed the $1 billion milestone. Avalanche was trading at $19.38, down by 46% from its highest point this year.
Avalanche RWA Assets Cross $1 Billion
The AVAX price has tumbled in the past few weeks despite having some of the top fundamentals in the crypto industry. One area it is seeing strong momentum is in the real-world asset (RWA) tokenizing industry, where assets have crossed the $1 billion milestone.
Most of these assets are in Securitize, which grew by 610% in the last 30 days to over $584 million. The others are from crypto companies like Tokeny, Centrifuge, Avant Protocol, and Agora Ledger.
READ MORE: Top 3 Reasons Why Ethereum Price Could Go Parabolic Soon
Avalanche’s RWA 30-day transfer volume jumped by 322% in the last 30 days, while the number of holders soared to almost 8,000. This growth will likely accelerate as Anthony Scaramucci’s SkyBridge has pledged to launch a $300 million tokenized fund in the network.
Also, Avalanche recently partnered with Mirae Asset, a company with over $800 billion in AUM. Mirae will also launch a tokenized fund in the network.
Avalanche network is also seeing string stablecoin growth as the market cap of all those in circulation jumped by 32% to $2.6 billion in the last 30 days. Stablecoin holders rose to 3.5 million, while the transfer volume was $111 billion.
AVAX price has more catalysts in the near term. For example, Avalanche’s team is raising $1 billion to build its reserves, a move that wil lead to more demand. Other companies are also considering launching those funds as they take advantage of the 7.5% staking yield.
Also, Avalanche is using the fees it generates to execute token burns. It has now burned over 4.9 million tokens, a figure that will increase as it continue to ink partnerships.
AVAX Price Technical Analysis
The daily timeframe chart shows that the AVAX price has crashed in the past few months. It has plunged from a high of $36.2 in September to below $20 today.
Avalanche price moved below the lower side of the rising broadening wedge pattern, invalidating the giant megaphone. Also, it moved below the 50-day and 200-day Exponential Moving Averages (EMA). The two indicators are about to form a death cross pattern.
Oscillators like the Relative Strength Index (RSI) and the MACD have all continued falling. Therefore, technicals suggest that the token has more downside ahead of an eventual rebound. It may drop to $15 and then bounce back in the coming weeks.
READ MORE: Bitcoin Price Prediction Ahead of US Inflation Data: Buy or Sell?
