AVAX price crash accelerated last week, even as the Avalanche network growth gained steam. The token plunged to $12.50, its lowest level since November 2023. It has plunged by over 62% from its September high.
Avalanche Network Growth is Accelerating
The AVAX price remained under pressure during the ongoing crypto market crash, even as the network growth accelerated. Data compiled by Nansen shows that it is one of the fastest-growing players in the crypto industry.
Avalanche network handled over 62 million transactions in the last 30 days, a 63% surge, while the number of users in the network rose by over 2.9% to 670,000.
More data shows that the stablecoin market cap on the network continued to rise this month. There are now over $2.08 billion in stablecoins in the network, up sharply from the year-to-date low of $1.46 billion.
Tether’s USDT and Circle’s USDC stablecoin have the biggest market share at $815 million and $612 million, respectively. The other top stablecoins in the Avalanche network are Avant USD (avUSD) and Agora Dollar.
Avalanche is also gaining market share in the real-world asset (RWA) tokenization industry. Data shows it is now the third-largest network in the industry, behind Ethereum and BNB Chain. It has over $883 million in assets.
Meanwhile, FIFA Blockchain is seeing strong growth from its Right-to-Buy FIFA World Cup collectibles. The network recorded over 17k transactions on Sunday, a trend that may accelerate this week, as RTBs can be exchanged for tickets until December 1.
Avalanche’s growth may accelerate after the developers launched the Granite upgrade, which introduced face and touch ID approvals and improvements to its cross-chain messaging.
AVAX’s price may also benefit from the upcoming launches of the Bitwise, Grayscale, and VanEck AVAX ETFs, which will drive greater demand from American investors.
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AVAX Price Technical Analysis
The daily timeframe chart shows that the Avalanche price has been in a strong downward trend in the past few months, moving from a high of $36 to the current $12.50.
It recently moved below the important support level at $14.6, its lowest level in April this year. Falling below this level confirmed that bears are in control.
The Relative Strength Index (RSI) has moved below the oversold level at $27, while the Stochastic Oscillator has moved to the oversold level.
Also, the Average Directional Index (ADX) has jumped to 50, the highest level this year, signaling that the downtrend is gaining momentum.
Therefore, the most likely scenario is that the AVAX price continues to fall as sellers target the key support level at $10. Its strong fundamentals may help it rebound in the long term.
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