Avalanche [AVAX] has the potential to attract investor confidence due to the remarkable progress witnessed in various domains.
In the past 90 days, both Avalanche’s revenue and daily active users experienced a staggering growth of 105%. Simultaneously, the number of core developers increased by an impressive 18% during this three-month period.
As we step into the month of May, it becomes crucial to examine Avalanche’s performance over the preceding months and evaluate its position for the next four weeks. Recent data indicates that Avalanche has sustained substantial growth, although the implications on AVAX’s price might not be immediate.
Based on an analysis conducted by Orion Research on the 30th of April, Avalanche achieved growth across multiple fronts. The data highlights the impressive 105% growth in revenue and daily active users within the last 90 days. Moreover, the number of core developers experienced an encouraging 18% increase during the same three-month timeframe.
These findings serve as confirmation that the network is progressing in the right direction. However, a deeper analysis of Avalanche’s on-chain metrics reveals that development activity has shown signs of slowing down in the past four weeks, reaching its lowest monthly level.
It is important to note that Avalanche’s success in the aforementioned areas does not necessarily guarantee a corresponding price movement for AVAX. In fact, the current price of AVAX, at the time of writing, is trading at a discount compared to its peak in February. Interestingly, the volatility metric has actually decreased and reached its lowest point in the past four weeks, indicating the current market performance.
The question arises: Can AVAX align itself with the trajectory of the Avalanche network?
AVAX’s lower range has been trading within an ascending pattern, with its bearish price action since 19th April testing the ascending support line once again. However, limited upside movement suggests a lack of significant bullish momentum. At the time of writing, AVAX is being traded at $17.37.
While predicting AVAX’s price expectations may prove challenging, several factors should be taken into consideration. The Money Flow Index (MFI) indicates a mid-level position, while the Relative Strength Index (RSI) hovers around the 50% mark. These metrics suggest that there is investor uncertainty regarding whether prices will rebound or continue to decline.
AVAX’s weighted sentiment experienced a slight increase following the latest support retest. However, the limited upside movement has also resulted in a loss of investor confidence, as evidenced by the subsequent decrease in supply held by top addresses.
Although AVAX’s on-chain volume experienced a brief resurgence, it has since decreased to a weekly low, indicating a current lack of strong market demand.
The current price action reflects investor concerns and does not necessarily reflect Avalanche’s overall performance. However, as the market sentiment shifts in favor of the bulls, Avalanche’s growth potential may instill greater investor confidence.
