- Avalanche price recent recovery has faded as stocks ease.
- The number of transactions in Avalanche have fallen sharply this year.
Avalanche price started the year well amid a strong crypto comeback. AVAX surged to a high of $18.57 on Wednesday, the highest point since November. A closer look at on-chain metrics are showing positive signs about AVAX even as its DeFi total value locked (TVL) retreats. Avalanche was trading at $16, which was much higher than this year’s low of $10.
Avalanche unique addresses rise
Data compiled by Snowtrace shows that the number of unique Avalanche addresses has been in a strong upward trend in the past few months. It has more than 4.26 million unique addresses holding the coin. In the past 24 hours, the number increased by more than 5,200. This is a positive sign since it shows that there is still demand for the AVAX token.
However, on a negative side, the number of transactions in the network has been falling. As shown below, the transaction count peaked at over 1 million in September 2022. Since then, these transactions have been in a downward trend and they are hovering near their lowest point of all time. There were 147,903 transactions on Wednesday this week. These numbers don’t include the activities of the subnets.
Including subnets, the number of monthly active users of Avalanche has been in a steady downward trend after peaking at 805k in January 2022.
Find out how to buy Avalanche.
Meanwhile, a look at liquidations data by CoinGlass shows that the number of short positions that were liquidated surged on January 14. Since then, the number of bullish trades liquidated in key exchanges like Binance and ByBit has been more than shorts. That is a sign that more buyers are starting to take profits.
Another key data to watch is activity in DeFi. Data shows that the DeFi TVL in Avalanche stands at about $1.5 billion, which is lower than its all-time high of over $20 billion.
Avalanche price prediction
It was easy to predict the recent uptick of AVAX price since it was severely oversold in 2022. I wrote this bullish prediction here. The coin has made a smooth volume-supported move in the past few days. It has already cruised above the December 14 high of $14.30. It now seems like sellers are attempting to retest this support level.
Therefore, whether Avalanche will continue its recovery trade will be determined by the move below $14.30. A drop below that level will signal that there are still more sellers in the market that will be willing to push it lower.
