AVAX adoption rate reaches 24%, highlighting increased newcomer activity.
Price down 3.5% in 24 hours; £30 psychological level remains significant.
Avalanche (AVAX) is currently trading at £26.64, reflecting a 3.5% decline over the past 24 hours and a 4% drop over the week. Trading volume has also decreased by 13%, indicating a lack of momentum. Despite these recent setbacks, AVAX is witnessing a new adoption rate of 23.5%, with a notable two-day peak at £29.32. This price is still approximately 81% below its all-time high of £144.96, reached in November 2021.
Since early August, AVAX has gained nearly 78% from its low of £15.01 on August 5. This surge has outpaced Bitcoin (BTC) and Ethereum (ETH), which have risen by 36.5% and 23.8%, respectively. However, while Avalanche’s recent performance has been commendable, the momentum appears to be waning. The Awesome Oscillator histogram indicates fading bullish momentum, and the Directional Movement Index (DMI) suggests that the current trend lacks strength, with the ADX below 20.
Avalanche is currently facing revenue challenges, ranking 11th among Layer-1 blockchains with a modest revenue of £2.05 million over the past 90 days.
Where To Next For AVAX?
Technical analysis reveals that AVAX is in a precarious position. The price hovers near the critical £25 support level, having recently broken out of a long-term corrective channel. Although this breakout signifies a potential end to the bearish phase, there has been insufficient follow-through, keeping the price close to pre-breakout levels.
AVAX Price Chart, Source: Sanbase
However, positive developments are on the horizon. Avalanche is collaborating with Chainlink and other financial institutions to address fragmented data issues, leveraging decentralised oracle networks for improved interoperability. Additionally, the introduction of the Avalanche crypto card, usable anywhere Visa is accepted, may further enhance user engagement.
Analysts predict a potential rally for AVAX. Nonetheless, market sentiments are cautious, as some forecasts suggest a possible correction in November. As the crypto landscape evolves, traders should remain vigilant, as external factors like the upcoming UK General elections could significantly impact market dynamics.
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