What to know:
- AVAX is consolidating near key resistance around $10
- Stablecoin activity on Avalanche has surged 250% YoY
- Market structure shows early recovery but no confirmed breakout yet
As Avalanche (AVAX) has seen more usage of stablecoin, and the general structure of the network has continued to improve, it looks like there may soon be a rally (price increase), as evidenced by some early signs of strength in the network.
AVAX is an advanced blockchain network that works with maximum speed, minimum cost, and high scalability to enable rapid development of scalable decentralized applications without limitation. At press time, the coin is trading at $9.13 with a decrease of 5.58% over the past 24 hours.
AVAX Consolidates Below Key Resistance Level
AVAX continues to trade close to the $9.13 mark, travelling sideways in a narrow channel below the $10.16 resistance level. The recent price action is indicative of a consolidation after a previous downtrend. Hence, a breakout through the $10 resistance level could lead to significant upside price movement.
Furthermore, the $9.00 price level appears to be serving as an area of support for price containment. In addition, with the MACD displaying weakening momentum momentum and RSI hovering around neutral, this indicates a wait-and-see market with regard to price directionality. Overall, AVAX has shown several accumulation possibilities; however, confirmation is warranted.
Also Read: Avalanche (AVAX) Bulls Gear Up: $15–$20 Range in Focus After Strong Support
Strong Growth in Stablecoins for Avalanche
Avalanche has highlighted sustained growth within its stablecoin ecosystem. Currently, there are approximately $1.67 billion in Stablecoins being held by over 3.1 million users on the network, and year-over-year transaction volume has increased by 250%.
Global companies like Revolut and Shift4 have begun accepting payments through Avalanche. Moreover, Visa, along with other global companies, has begun accepting Stablecoin settlements via the Avalanche platform.
This increased level of adoption adds considerable long-term momentum toward the future health of Avalanche.
While we conclude, if prices break through the $10 threshold, we could see an increase in bullish momentum.
If prices do not break through that threshold, they will likely remain in a sideways trend for some time. The market is currently looking for that next defining move.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Avalanche Explodes in Focus as AVAX Eyes $80 Breakout After Holding $9.50 Support
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