The Avalanche price has remained in a technical bear market after crashing by over 30% from its highest level in December. On Boxing Day, the AVAX token crashed to $36 as other cryptocurrencies plunged. It has dropped to $37.60, bringing its market cap to about $15.38 billion.
Avalanche has encouraging metrics
Avalanche prices have crashed despite some positive news in the ecosystem. The company recently launched $250 million from a group of investors led by Galaxy Digital. That fundraising means the company now has over $3.2 billion in its treasury, making it one of the richest blockchain networks in the crypto industry.
Avalanche also has some strong metrics. DeFi Llama data shows that the network has 416 DeFi dApps in its ecosystem, with a total value locked (TVL) of over $1.3 billion, $4.6 billion in bridged TVL, and $2.3 billion in stablecoin volume.
We believe that Avalanche’s recent investment and its network strength have a chance of moving on par with Solana. Solana has become the second-biggest chain in the industry because of its strength in meme coins.
On-chain data shows that the network is making some slight improvements. Avalanche’s active addresses ratio has moved to 0.62%, up from this month’s low of 0.54%. This number looks at the ratio of active addresses with those with balances.
More data shows active addresses have risen to over 58,000, while new addresses have jumped to almost 15,000. While these numbers are still lower than earlier this month, the trend is improving.
The other notable Avalanche data is its MVRV indicator, one of the most popular tools in the crypto market. According to IntoTheBlock, the MVRV indicator has pointed upwards and currently stands at 1.1. A figure below 3.8 is usually a sign that a crypto asset is cheap, meaning that AVAX is fairly undervalued.
Avalanche price analysis
The daily chart shows that the AVAX price formed a double-top pattern at $55.90, and the neckline was at $40.95. A double-top is a popular bearish chart pattern in trading.
Avalanche has dropped below the 50-day moving average, forming a bearish flag chart pattern consisting of a vertical line and a rectangle. It has also dropped below the Ichimoku cloud indicator.
Therefore, the coin will likely resume the downward trend since it has already formed a break and retest pattern, a popular continuation sign. It did that by retesting the double top’s neckline at $40.95.
Therefore, while Avalanche has some good fundamentals, technicals suggest it will resume the downtrend and possibly move to $25.
Read more: Can Avalanche Price Soar to $1k as One Crypto Pro Predicts
