AVAX Price at a Critical Point Amid Strong On-Chain Activity
AVAX price is at a crucial technical point. Despite robust on-chain activity, bearish signals are emerging. In mid-March, AVAX reversed from a double bottom and entered an ascending channel, showing bullish signs. However, the trend has shifted.
recently, AVAX has formed a descending triangle, hovering near key support. it has also fallen below the ascending channel’s lower boundary. This suggests a possible change from bullish to bearish pressure. The price is now near a critical support zone around $17.80 to $18.50. This area is vital as it combines horizontal support, the descending triangle’s lower edge, and the broken ascending channel’s support.If it drops below this zone, it could confirm a descending triangle breakdown, potentially leading to a fall towards $15.00. The Relative Strength Index (RSI) is nearing oversold territory, adding to the tension between price and on-chain activity.
On-chain metrics show a surge in transactions, largely due to arena.trade. This platform lets users create ERC-404 tokens from X posts. The 7-day moving average of daily transactions has hit over 1 million, the highest in over a year. Yet, the rise in transactions hasn’t led to more active addresses, suggesting a smaller user base is driving the volume.
Traders shoudl watch the next few days closely. A drop below the support zone could confirm a bearish trend. Conversely, a bounce could signal a bullish recovery. The RSI is near oversold, adding to the uncertainty. For more insights, check TradingView and TheBlock.co for updates.
