Avalanche Price Prediction as Transactions, RWA Assets Jump

Avalanche price has crashed over the past few weeks, dropping from a high of $36.17 in September to its current level of $22.55. This crash has coincided with that of other cryptocurrencies. So, will its strong fundamentals, including RWA growth, offset the weak technicals?

Avalanche Price Technical Analysis Points to More Downside

The daily timeframe chart shows that the AVAX price has tumbled in the past few weeks. It moved from a high of $36.17 to a low of $16.95 on Friday as the crypto market crashed.

It moved below the lower side of the megaphone pattern that started forming in June this year. In most cases, a megaphone is one of the most popular bullish continuation chart patterns.

The stock has moved below the 50-day and 200-day Exponential Moving Averages (EMA), which are about to cross each other. Such a cross would be a death cross, which is a common bearish chart pattern.

AVAX price has also formed a bearish flag pattern, which is made up of a vertical line and a channel. This pattern often leads to a strong bearish breakout over time. If this happens, the next point to watch will be the year-to-date low of $16.95. Such a move would represent a 25% decline from the current level.

A move above the resistance level at $26.72, which is the lower side of the megaphone pattern, will invalidate the bearish outlook.

Avalanche Network is Doing Well

There are signs that Avalanche’s fundamentals have deviated from its technicals.

First, the most recent data shows that Avalanche has evolved into one of the biggest players into the real-world asset (RWA) industry. According to RWA, the network’s total value locked in the RWA industry has jumped to $750 million, making it the fifth-biggest player in the industry after Ethereum, ZkSync, Polygon, and Arbitrum.

This growth is expected to accelerate in the coming months as some of the recently announced partners launch their tokenized assets. For example, Skybridge, the financial company started by Anthony Scaramucci, has committed to start a $300 million tokenized fund on the network.

Avalanche has also recently partnered with Mirae Asset Management, a major South Korean company with over $720 billion in assets, which will launch its tokenized platform on the Avalanche chain.

At the same time, Avalanche is a major player in the stablecoin industry, with the market capitalization of all these tokens on the network rising to $2.7 billion. In comparison, the number of holders has reached $ 3.5 million. The 30-day stablecoin transfer volume stood at $120 billion.

Avalanche Transactions are Soaring

Meanwhile, a third-party data institute suggests that an increasing number of users are transacting through the network. Its cumulative unique addresses have increased by 2 times from last year to 60 million. The number has jumped by 15,000% in the last four years.

All this growth has led to a big increase in the amount of fees made by the network. Avalanche’s fees jumped by 267% in the last 30 days to over $2.04 million.

The rising fees are notable as the network burns all fees, reducing the number of tokens in circulation. Data shows that over 4.8 million AVAX tokens have been incinerated in the past few years, a trend that may continue as the fees jump.

AVAX price has more potential catalysts. For example, the Securities and Exchange Commission (SEC) is considering the approval of the Bitwise, VanEck, and Grayscale AVAX ETFs. If approved, the funds are likely to receive substantial inflows from American investors, resulting in increased demand.

Another catalyst is that several companies have started accumulating AVAX tokens as part of their treasuries. Unlike Bitcoin, which has no yield, these companies will generate a return because Avalanche has one of the biggest yields in the crypto industry. Its staking yield is 7.15%, which is higher than Ethereum’s 2.93%, Solana‘s 6.5%, and Sui’s 2.13%.

Still, it is unclear whether these strong fundamentals will help boost the Avalanche price. It is common for some cryptocurrencies with strong fundamentals to struggle, especially during a bear market in the cryptocurrency market.