Assessing the state of Avalanche’s [AVAX] metrics ahead of December 2022

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  • Avalanche’s TVL reg­is­ters an increase, but the met­rics favor the bears
  • RSI and Bollinger Bands give bear­ish sig­nals while MFI and MACD sug­gest otherwise 

Avalanche Dai­ly, a pop­u­lar Twit­ter han­dle that posts updates about the Avalanche [AVAX] ecosys­tem, post­ed the week­ly stats of the net­work on 27 November. 

As per the data, the total stake amount reached 260,644,512 AVAX, which looked opti­mistic for the blockchain. Nonethe­less, the total vol­ume of the Avalanche ecosys­tem changed lit­tle com­pared to last week, as its num­ber stood at over 13 mil­lion, which trans­lat­ed to two mil­lion trans­ac­tions per day.

How­ev­er, Avalanche’s total active address vol­ume showed signs of a decrease to an aver­age of 30k per day. Apart from these, sev­er­al inte­gra­tions hap­pened in the Avalanche ecosys­tem that had the poten­tial to ini­ti­ate a price pump. COMB Finan­cial, for exam­ple, recent­ly announced that Utopia went live on Avalanche.

Inter­est­ing­ly, AVAX’s per­for­mance on the chart has also been slug­gish late­ly. The alt reg­is­tered over a 5% decline in its price over the last 24 hours and was trad­ing at $12.30, at press time.

On the same note, let’s have a look at the oth­er notable devel­op­ments and met­rics to under­stand what investors should expect from AVAX dur­ing the last few weeks of this year.

Read Avalanche’s [AVAX] Price Pre­dic­tion 2023–24

This looks concerning for Avalanche

AVAX’s on-chain met­rics revealed that the sell­ers were lead­ing the mar­ket, as sev­er­al met­rics sug­gest­ed a fur­ther price decline dur­ing the days to fol­low. For instance, AVAX’s Binance fund­ing rate reg­is­tered a sharp decrease, which is a bear­ish sig­nal as it indi­cat­ed that the token failed to receive inter­est from the deriv­a­tives mar­ket. AVAX’s pop­u­lar­i­ty also seemed to decrease, as its social vol­ume fell over the last week.

Fur­ther­more, AVAX’s devel­op­ment activ­i­ty shift­ed south­ward and decreased sig­nif­i­cant­ly, which is a neg­a­tive sig­nal for a blockchain because it rep­re­sents decreased devel­op­er efforts to improve the network. 

How­ev­er, DeFiLlama’s data pro­vid­ed some relief as it revealed a pos­i­tive update. Accord­ing to the charts, AVAX’s total val­ue locked (TVL) went up over the last few days, which was a piece of opti­mistic news for the investors.

Source: San­ti­ment

Do the bulls have a chance? 

Though Avalanche’s dai­ly chart also favored the bears, a few of the indi­ca­tors sug­gest­ed that the bulls might be gear­ing up. The Bollinger Band indi­cat­ed that AVAX’s price was about to enter a squeezed zone. Thus, reduc­ing the chances of a north­bound break­out soon. The Rel­a­tive Strength Index (RSI) was rest­ing below the neu­tral mark, which was yet anoth­er bear­ish signal. 

How­ev­er, AVAX’s Mon­ey Flow Index (MFI) reg­is­tered an uptick, which gave investors hope. The MACD also dis­played a bull­ish crossover, which might help AVAX increase its price in the com­ing days.

Source: Trad­ingView

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