Avalanche (AVAX) is up nearly 120% this month and is at the “overbought” threshold.

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Avalanche (AVAX) has consistently led the layer-1 segment over the past week. However, data from CryptoQuant shows that this Token is stopping at the "overbought" threshold.

Avalanche (AVAX) is up nearly 120% for the month and is at the “overbought” level. Photo: CCN

Over the past month, layer-1 platforms have recorded many impressive price increases, with native coins increasing by more than 100%, outperforming Ethereum (ETH) at only 22%.

Most notable is the Avalanche ecosystem, whose AVAX coin has increased nearly 130% in the past 30 days. In the same time frame, Solana (SOL) and NEAR Protocol (NEAR) skyrocketed by 113% and 110%, respectively. In addition, the daily transaction volume on NEAR has also set a new peak since the end of last year until now.

Correlation of AVAX 's daily price fluctuations with SOL, NEAR and ETH. CoinMarketCap screenshot at noon on November 21, 2023

Daily transaction Volume on the network also improved positively. Avalanche's TVL increased nearly 20% for the week, placing it ahead of Arbitrum. However, the amount of transaction fees is still maintained in balance and there is no new money flowing into this ecosystem. As Coin68 has compiled , AVAX 's price increase here is not sustainable, but may come from some whales wanting to pump liquidation to create FOMO to Dump goods.

Avalanche's TVL fluctuations. Source: defillama (November 21, 2023)

Take more data from CryptoQuant, which also reflects the opposite trend. AVAX 's relative strength index (RSI) is at 71, meaning the market is "overbought". This pushes the AVAX price above the equilibrium threshold, and signals that the Token price may decrease in the near future.

AVAX Relative Strength Index (RSI). Source: CryptoQuant (November 21, 2023)

AVAX is trading around the 20.8 USD mark, fluctuating slightly about 1% in the past 24 hours.

1D graph of the AVAX/ USDT pair on Binance at 11:45 AM on November 21, 2023

Avalanche's partnerships with financial giants such as JP Morgan and Citi are the driving force driving AVAX forward. Last week, JPMorgan's Onyx digital asset development team announced a partnership with Avalanche based on the Monetary Authority of Singapore"Guardian" initiative.

According to Sei Labs founder Jeff Feng, high throughput and low transaction fees are the highlights of the Avalanche ecosystem in the current context. Feng believes that Avalanche is playing to its strengths in enterprise applications, from asset Tokenize to payment processing, and has the capacity to solve the scalability and throughput challenges in the space. blockchain sector.

Nansen analyst Martin Lee sees AVAX 's price action as positive, following the general uptrend of the altcoin market. He also highlighted Avalanche's recent partnership with JP Morgan.

Chia with The Block , the Nansen representative still prioritizes Ethereum and believes that depending on their needs, organizations will choose the appropriate blockchain.

On the other hand, this blockchain has encountered many difficulties in recent times. The leading blockchain explorer service on Avalanche, Snowtrace, has announced that it will stopoperating at the end of this month because it no longer has enough funding to maintain. AVA Labs - the developer of Avalanche in early November also cut staff , focusing on promoting its flagship product.

Coin68 compiled

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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