AVAX Adoption Reaches 24%, But Price Faces Resistance.
Avalanche (AVAX) has seen its adoption rate climb to 23.5%, indicating increased activity from new users. However, the token’s price has dropped 3.5% over the past 24 hours, currently trading at $26.64, and it has fallen 4% over the week. Trading volume has also decreased by 13%, suggesting a lack of momentum. Despite the setbacks, AVAX recently peaked at $29.32 but remains about 81% below its all-time high of $144.96 from November 2021.
Since August, AVAX has surged nearly 78% from its low of $15.01 on August 5, outperforming Bitcoin (up 36.5%) and Ethereum (up 23.8%). However, the upward momentum appears to be fading, as the Awesome Oscillator shows weakening bullish signals, and the Directional Movement Index (DMI) reflects a lack of trend strength, with the ADX below 20.
AVAX’s Current Challenges and Future Outlook:
Avalanche is facing revenue difficulties, ranking 11th among Layer-1 blockchains, with $2.05 million in revenue over the past 90 days.
What’s Next for AVAX?
Technically, AVAX is at a critical point, hovering near the $25 support level after recently breaking out of a long-term corrective pattern. While the breakout could mark the end of its bearish phase, there hasn’t been strong follow-through, and the price remains near pre-breakout levels.
Positive developments may improve AVAX’s outlook. The network is partnering with Chainlink and other financial institutions to address data fragmentation issues by utilizing decentralized oracles for better interoperability. Additionally, the launch of the Avalanche crypto card, which can be used anywhere Visa is accepted, could boost user engagement.
Analysts suggest a possible rally for AVAX, though market sentiment remains cautious, with some forecasting a correction in November. As the crypto market continues to evolve, external factors like the upcoming U.S. Presidential elections may also play a role in shaping future trends.
