Chainlink Announces Exciting New Features to Enhance User Experience
Avalanche (AVAX) experienced a peak price of $59 on March 26 as it made another bold attempt to break the $60 resistance level. On-chain data trends reveal that recent team announcements have served as significant catalysts for the bullish momentum.
Since March 11, Avalanche has outperformed major Layer-1 altcoins like Ethereum (ETH) and Ripple (XRP), with a gain of 43%. This impressive performance has raised the question of whether the recent team announcements can push AVAX price towards the $70 milestone.
The Avalanche team has been making significant progress in improving their service offerings, attracting new users to the ecosystem, and aligning with the dominant narratives in the crypto market. One notable announcement was the establishment of a $1 million “Memecoin Rush” fund on March 21. This fund was created to incentivize developers and liquidity providers to support meme projects within the community.
Another significant development was the collaboration between the Australia and New Zealand Banking Group (ANZ) and Chainlink Labs, which resulted in the connection of blockchains, particularly Avalanche and Ethereum, for the global movement and settlement of tokenized assets. These consecutive landmark announcements have led to a noticeable increase in the organic growth of the Avalanche ecosystem, as indicated by recent data trends.
The adoption rate of AVAX, measured by the percentage of total daily network transactions executed by wallets conducting their first trades, has been on the rise since the announcement of the $1 million memecoin rush fund. On March 25, it was observed that 25.4% of all transactions on the Avalanche network came from first-time users, surpassing the 30-day average of 22.4%.
The surge in new-user transactions can have a bullish impact on the price of AVAX for several reasons. Firstly, it signifies a broader user base and an increased network effect, which enhances the ecosystem’s resilience and long-term viability. A larger user base also leads to greater potential for network growth, increased transaction volume, and improved liquidity, all of which are positive indicators for price appreciation.
Furthermore, first-time users often bring fresh capital into the market, which can create upward pressure on prices, especially if demand outweighs supply. Additionally, these new users may hold onto their assets for longer periods, reducing the available supply and further strengthening prices.
Considering the recent surge in Avalanche’s new-user transactions and the overall optimistic sentiment generated by the team’s announcements, it is likely that AVAX price will continue to rise towards the $70 target.
However, breaking past the $60 resistance level may pose a challenge for AVAX bulls, as indicated by Coinglass’ Liqudation Map data. Short traders have taken leveraged positions that could result in a loss of $27.8 million if prices exceed the $60.9 mark. As AVAX price approaches this critical area, these traders may execute strategic stop-loss orders to mitigate potential downsides.
Nevertheless, if the rising demand from new users in the Avalanche ecosystem persists, AVAX could overcome this sell-wall and move towards the $70 target, as predicted.
On the other hand, if significant sell-offs trigger a major market downturn, AVAX price could drop below the $50 mark. In such a scenario, long traders may regroup to form a support buy-wall at the $53 level to protect their $7 million active leveraged positions.
In conclusion, Avalanche’s recent team announcements and the increasing adoption rate by new users have set the stage for a potential rise in AVAX price towards the $70 milestone. However, the resistance at $60 poses a challenge for the bullish momentum, and the market should closely monitor the actions of short and long traders to gauge the future price movements of AVAX.
