- AVAX’s TVL gained upward momentum since the beginning of April.
- AVAX’s price surged considerably, but a few indicators suggested a trend reversal.
AVAX Daily’s weekly highlight pointed out a massive surge in Avalanche’s [AVAX] key metric over the last week. As per the data, AVAX’s daily active addresses increased by nearly 150%, reflecting increased adoption and usage of the blockchain.
🔺Avalanche Ecosystem Weekly Highlights🔺
Price gainers$WOO @WOOnetwork$XEN @XEN_Crypto$INJ @Injective_$NXRA @allianceblock
TVL gainers$ANKR @ankr$WXT @nereusfinance$KINE @KineProtocol
$O3 @O3_Labs#AVAX #Avalanche #DEFI $AVAX pic.twitter.com/52z2lbW4Js— AVAX Daily 🔺 (@AVAXDaily) April 16, 2023
How much are 1,10,100 AVAXs worth today?
Avalanche: Major metrics on the rise
Thanks to the increase in daily active users, a few other stats also turned in AVAX’s favor. For instance, Avalanche’s fees and revenue increased substantially over the last few days. Moreover, AVX’s TVL also registered a similar growth since the beginning of April 2023, as evident from DeFiLlama’s data.
Source: Token Terminal
This might have caused the surge
A possible reason for the sudden hike could be the launch of Avalanche’s Evergreen Subnets on 6 April. For the uninitiated, Avalanche Evergreen Subnets are a suite of institutional blockchain deployments, customizations, and tooling designed to address company-specific requirements for financial services.
Introducing Avalanche Evergreen Subnets 🌲
Institutions want to leverage the power of public blockchain development, interoperability and composability while enabling features historically only possible with enterprise blockchains.
Evergreen gives them the best of both worlds👇 pic.twitter.com/EbziGmGrYY
— Avalanche 🔺 (@Avax) April 6, 2023
It was also interesting to see AVAX’s development activity increase, along with positive sentiment, since the announcement.
Source: Santiment
A trend reversal around the corner?
Avalanche’s native token also responded to these updates as its price increased by over 16% in the last seven days. According to CoinMarketCap, AVAX was up over 3% in the last 24 hours alone, and at press time, it was trading at $21.30. However, the good days might end soon.
As per CryptoQuant, AVAX’s Relative Strength Index (RSI) was in an overbought position. This was concerning as it could increase selling pressure, in turn stopping AVAX’s bull rally. AVAX’s Money Flow Index (MFI) also entered the overbought zone.
Additionally, the Chaikin Money Flow (CMF) registered a decline, further increasing the chances of a trend reversal soon.
Source: TradingView
Read Avalanche’s [AVAX] Price Prediction 2023-24
Nonetheless, a few of the indicators remained in favor of the buyers. The Exponential Moving Average (EMA) Ribbon revealed that the bulls were still leading the market as the 20-day EMA was above the 55-day EMA.
The MACD’s finding complemented that of the EMA Ribbon, as it showed a bullish edge. AVAX’s Binance funding rate remained high, reflecting its demand in the derivatives market.
Source: Santiment