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 46% from its year-to-date high.
Avalanche RWA Assets Cross $1 Billion
The AVAX price has tumbled over the past few weeks despite strong fundamentals. One area seeing strong momentum is the real-world asset (RWA) tokenizing industry, where assets have crossed the $1 billion mark.
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.
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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.
The Avalanche network is also seeing strong stablecoin growth, with the market cap of all circulating stablecoins jumping by 32% to $2.6 billion over 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, which will drive 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 continues 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 such as the Relative Strength Index (RSI) and the MACD have continued to fall. 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.
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