Despite witnessing a surge in its network activity, the AVAX cryptocurrency is potentially facing a price drop. The AVAX network activity, particularly the inscription activity, consumed 72.3% of the network’s gas, as reported by Wu Blockchain. This activity also represented 86.5% of all transactions on the network during the same period. However, this increased activity doesn’t seem to be positively impacting the coin’s price.
The Network’s Gas Consumption
Over the past week, the gas consumption of the Avalanche’s C-Chain, a part of the AVAX network, soared past $20 million. This was primarily driven by the inscription activity, which accounted for nearly three-quarters of the total gas consumption. The gas fees even briefly spiked past 5,000 nAVAX, equivalent to $4.5.
AVAX’s Current Market Position
At the time of writing, AVAX’s price had dropped by 7.91%, with the coin trading at $39.01, as per CoinMarketCap. Despite this, AVAX managed to record a weekly gain of more than 10%. The altcoin also retained its position as the ninth largest cryptocurrency in terms of market capitalization, boasting a valuation of $14.26 billion.
Technical Analysis of AVAX
Over the past few days, AVAX managed to breach the $37.15 resistance level. Since then, the price has been consolidating, but traders seem to be selling off their AVAX holdings as the altcoin nears its support level. If AVAX closes a daily candle below $37.15 in the next 48 hours, it could potentially drop to as low as $27 in the following week. Conversely, if it stays above this level, the altcoin could rise towards the $52.60 resistance level in the short term.
Technical indicators, including the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI), suggest a potential price drop for AVAX in the coming days. The MACD line is nearing the MACD signal line, indicating a possible bearish trend reversal for AVAX. The RSI line has also broken below the RSI Simple Moving Average (SMA) line recently, suggesting that sellers are gaining an upper hand against the bulls.
For those interested in monitoring the AVAX network activity and other cryptocurrency trends, the cryptoview.io application can be a useful tool. It offers a comprehensive view of the crypto market, making it easier for traders and investors to make informed decisions.
