For the past month, Avalanche [AVAX] has steadfastly held onto the $35 support region. Recent analysis indicated that if liquidation clusters below $34.72 were activated, a downward price movement could be triggered. From a technical perspective, it was crucial for bull to defend the $35 support level.
The failure to do so might result in a price decline towards $28.5 as indicated on the charts.
Positive Progress and Blockchain Activity
Since 2021, there has been a steady increase in core developers and commits.
Although these numbers have slightly decreased since June 2024, they are higher than in late 2021. This upward trend is optimistic for long-term prospects. While the trading volume has not reached the levels seen in late 2021, it has shown significant growth in recent months. Sustained growth is essential to drive demand and consequently, the price of AVAX.
The Total Value Locked (TVL) has experienced a significant drop from its 2021 peak of $11.44 billion. Despite a gradual increase in transactions in recent months, they have not come close to the highs of late 2023 or 2022.
Notably, there was a substantial increase in positive inflows two weeks ago, indicating a rise in capital or assets being injected into the DeFi protocol through activities like liquidity pool addition or staking. This can be viewed as a positive sign, especially considering the consistent positive inflows over the past two months.
Moreover, the number of new and active addresses has been on the rise in the last couple of months, suggesting a growing demand for AVAX.
Data from IntoTheBlock also shows a significant increase in total non-zero balance addresses on the Avalanche network, surging from 3.42 million in May 2023 to 9.64 million in January.
Overall, on-chain metrics indicate a steady growth in relevant indicators in recent weeks and months. While the decrease in development activity poses a minor concern, the recent decline in stablecoin market cap could potentially worry the bullish investors.