- Avalanche price has formed an inverted H&S pattern.
- The number of transaction count has held steady.
Avalanche price has moved sideways in the past few days despite encouraging statistics about the ecosystem. AVAX was trading at $13 on Thursday, which was about 13% above the lowest level this year. It remains about 37% below the highest point in November.
Avalanche transactions count stable
Avalanche is a leading blockchain project that was established by Emin Gun Sirer, a Turkish-American computer scientist. It is often described as the fastest and most scalable blockchain network.
According to its website, Avalanche can handle unlimited transactions per second while Ethereum can handle less than 20. Its transactional finality time is less than 2 seconds, compared to Ethereum’s 6 seconds.
As a third-generation blockchain project, Avalanche has more advanced features than Ethereum and BNB Chain. As a result, thousands of developers are building on the network. For example, Lemonade, the fast-growing insurance company, created an affordable insurance marketplace using its technology.
Find out how to buy Avalanche.
Similarly, Deloitte used its technology to build a platform for government agencies to distribute FEMA funds. Other popular apps created in Avalanche are Trader Joe, Platypus Finance, AAVE, Hubble Exchange, and Joepegs among others.
Avalanche price came under pressure in November following the collapse of FTX and Alameda Research. This decline was part of the collateral damage that happened across the blockchain sector.
Still, on-chain data shows encouraging signs about the sector. For example, the cumulative number of contracts deployed per day surged to an all-time hgh of 252k by November 29. Avalanche had about 50k cumulative contracts in the same period in 2021.
Another encouraging sign is the amount of gas used in the network. It rose to an all-time high of 827 billion on November 9. It is now hovering near its all-time high. Further, the total transaction count in the network stands at 1.9 million transactions, which is an encouraging number.
However, the performance of its DeFi ecosystem has lagged. Like other chains, the total value locked (TVL) in Avalance’s ecosystem crashed from over $22 billion in 2021 to about $1.9 billion.
Avalanche price forecast
The 4H chart shows that the AVAX price has been in a consolidation phase in the past few days. In this period, it has remained slightly below the important resistance level at $13.40. This price is the shoulder of the inverted head and shoulders pattern. In technical analysis, this price action is usually a bullish sign.
AVAX price has also moved slightly above the 25-day and 50-day moving average. The Relative Strength Index (RSI) has moved slightly above the neutral level. Therefore, because of the inverted H&S pattern, the coin will likely have a bullish breakout in December. If this happens, the next key level to watch will be at $15.
