Avalanche Transactions Skyrocket 326%—But One Ominous Chart Threatens the Rally
Avalanche's network activity just went parabolic—monthly transactions surged 326% as developers flock to its low-fee, high-speed ecosystem. Retail FOMO is creeping in, and even Wall Street's crypto tourists are starting to nod approvingly.
But here's the catch: that 'make or break' technical indicator flashing red. The same chart pattern that preceded last quarter's 40% correction is back—just as the greed index hits yearly highs. Classic crypto.
Meanwhile, TradFi analysts still can't decide if blockchain is 'the future of finance' or a spreadsheet with extra steps. Place your bets.
Avalanche chain growth | Source: Nansen
Another piece of data shows that Avalanche’s stablecoin network has started to rebound. It has over $2.1 billion in stablecoin market cap, the highest it has been since Feb. 19. This is up from $1.46 billion on January 20.
Decentralized exchange protocols on Avalanche are also seeing high volume recently. It handled over $131 million in volume in the last 24 hours, the third day of gains.
Avalanche scores with FIFA NFT deal, technicals show…
Avalanche gained traction after the Fédération Internationale de Football Association, or FIFA, said that it WOULD tap its network to power its NFT sales.
This is a big deal for Avalanche because of FIFA’s scale and the plunge in its chain’s NFT sales in the past few years. These sales stood at just $103,000 in the last seven days.
The three-day chart shows that the AVAX price formed a double-top pattern at $55.20 and then crashed. A double-top is one of the most bearish patterns in technical analysis.
It is hovering above the upper side of the neckline at $17.5, its lowest point in August last year. AVAX has also formed a bearish flag pattern, consisting of a vertical line and a rising channel.
Avalanche price also remains below the 50-week and 200-week Weighted Moving Averages. Therefore, the most likely scenario is where Avalanche price has a bearish breakdown despite its strong ecosystem metrics. If this happens, the next target price will be $15, down by 27% from the current level.
