Key Insights
- Avalanche price crashed to an important support level this week.
- The network will launch the Granite upgrade next week.
- Nansen data shows that the number of transactions in the network are soaring.
Avalanche price has been in a strong downward trend since September 22, dropping by almost 60% to the current $15.25. AVAX has dropped by ~60% from its September highs, and technicals points to more downside despite the rising transactions and the upcoming Granite upgrade.
Avalanche Price Technical Analysis Points to a Crash After Hitting a Key Support Level
The AVAX price has remained in a bear market over the past few weeks, declining from a high of $36 in September to its current level of $15.26. Its current level is notable as it was the lowest swing in May, April, June, and November 4 this year.
The token has moved below the 50-day and 100-day Exponential Moving Averages EMA), while the Percentage Price Oscillator (PPO) has remained below the neutral level. An asset normally remains under pressure when the PPO indicator is below this level and when the price is in a downward momentum.
The token has moved below the Supertrend indicator, a sign that the strength of the downtrend is becoming stronger. Therefore, the most likely AVAX price forecast is bearish if it moves below the current support. A move below that level will indicate further downside, potentially to last month’s low of $8.7460. Losing that support level will likely lead to further downside as the crypto market crash continues.
On the other hand, the coin may rebound if it manages to hold the current support as it has done in the past. If this happens, the coin may rebound to the next significant resistance level at $26, the highest level reached on May 11. Flipping that price will then bring the next key resistance level at $36 into view.
Avalanche Granite Upgrade is Coming
AVAX token has some important fundamentals, which may help it to recover in the near term. One of them is that the network is preparing for the upcoming Granite upgrade, which will happen on November 19.
This upgrade, currently in the Fuji testnet, introduces two major features to the network. For example, it introduces the Interchain Messaging Improvement (ICM) changes, including the P-Chain Epoched Views, which will make the network more reliable.
Granite also introduces Biometric Authentication and Dynamic Minimum Block Times. The latter feature will allow more flexible block production speeds depending on the overall network demand.
In most cases, cryptocurrencies normally rally before and after a major network upgrade. For example, Ethereum and BNB prices jumped to their all-time highs this year after the developers introduced major upgrades: Pectra and Pascal.
Avalanche Network Growth is Accelerating
Another major catalyst for the Avalanche price is that the network growth is accelerating ahead of the upcoming Granite upgrade.
Data compiled by Nansen shows that the network’s transactions increased by 92% over the last 30 days, as the number of active addresses rose by 9.4% to 733,443.
Avalanche’s transaction growth is visible in key areas of its ecosystem. For example, Avalanche has become one of the fastest chains in the real-world asset (RWA) tokenization industry. Its total value locked in the industry has increased by 65% over the last 30 days to exceed $1.1 billion.
This market share makes it one of the largest players in the industry, alongside Canton, Provenance, Ethereum, ZkSync, and Polygon. Some of the top companies in the network are Securitize, Tokeny, Centrifuge, and Avant Protocol.
Avalanche price has other catalysts, including the recent transformation of AgriForce into AVAX One, a NASDAQ-listed company whose goal is to accumulate the AVAX token. It will also use its staking rewards to invest in companies in the Avalanche ecosystem.
The other key catalyst is that the Securities and Exchange Commission (SEC) is likely to approve the VanEck and Grayscale Avalanche ETFs before the end of the year. Additionally, it has already approved similar funds for tokens like XRP and Solana, which are experiencing strong demand from investors.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
