Avalanche gains momentum as monthly transactions surge 326% but this chart signals a cold front

Avalanche price rose for two consecutive days as investors bought the recent dip, and weekly transactions jumped.

Avalanche ($AVAX) token rose to $20.65 on Saturday, June 7, up by 12% from its lowest point this week.

Third-party data shows that Avalanche’s network is doing well as it became the fastest-growing one in the industry this week. According to Nansen, Avalanche handled over 5.2 million transactions in the last seven days, a 112% increase from a week earlier.

This increase happened as the number of active addresses jumped by 23% to 283,163. Avalanche’s fees jumped by 193% to almost $200,000.

The same performance has happened in the last 30 days as the transaction count jumped by 326% and active addresses jumped by 312% to 2.05 million.

Avalanche chain growth | Source: Nansen

Another piece of data shows that Avalanche’s stablecoin network has started to rebound. It has over $2.1 billion in stablecoin market cap, the highest it has been since Feb. 19. This is up from $1.46 billion on January 20.

Decentralized exchange protocols on Avalanche are also seeing high volume recently. It handled over $131 million in volume in the last 24 hours, the third day of gains.

Avalanche scores with FIFA $NFT deal, technicals show…

Avalanche gained traction after the Fédération Internationale de Football Association, or FIFA, said that it would tap its network to power its $NFT sales.

This is a big deal for Avalanche because of FIFA’s scale and the plunge in its chain’s $NFT sales in the past few years. These sales stood at just $103,000 in the last seven days.

$AVAX price chart | Source: crypto.news

The three-day chart shows that the $AVAX price formed a double-top pattern at $55.20 and then crashed. A double-top is one of the most bearish patterns in technical analysis.

It is hovering above the upper side of the neckline at $17.5, its lowest point in August last year. $AVAX has also formed a bearish flag pattern, consisting of a vertical line and a rising channel.

Avalanche price also remains below the 50-week and 200-week Weighted Moving Averages. Therefore, the most likely scenario is where Avalanche price has a bearish breakdown despite its strong ecosystem metrics. If this happens, the next target price will be $15, down by 27% from the current level.