Avalanche earlier today boasted a seven-day 15% price rise on AVAX, and is among the few crypto assets to post double-digit gains in that particular department.
However, the cryptocurrency seemed to have entered a price correction phase, losing 5.1% of its value in the last 24 hours.
- AVAX lost some of its weekly gains, which are now at 8.5%
- Various technical indicators suggest that the crypto asset is in an overbought position
- A fall to the $12 territory remains a strong possibility in the coming days.
At the time of writing this article, according to data from Coingecko, the altcoin is trading at $13.53. Although it experienced a decline, it is still at a weekly rally of 8.5%. Furthermore, over the past two weeks, the altcoin has managed to rally 14.1%.
Although Avalanche performed relatively well last week, traders and investors may need to prepare as some of their technical indicators point to potential bearish momentum over the next several days.
Metrics show possible obstacles for AVAX
At the moment it would seem that bears are currently in control with the price trajectory of the digital asset, evidenced by its 20 day EMA, stabilizing just below the 55 day EMA.
Source: TradingView
Also, although the Moving Average Convergence Divergence (MACD) is showing a bullish crossover at the moment, the AVAX Money Flow Index (MFI) has been pushed into overbought territory, indicating that there is a high probability of a downside. a price drop.
Finally, the relative strength index (RSI) of cryptocurrencies also indicates that Avalanche is currently overbought and that means bad news for cryptocurrency holders.
In the meantime, Coincodex seems to support the crypto’s bearish thesis, as the platform predicts that by December 12, the altcoin will have a spot trading price that is 22% lower than its current value.
Avalanche Subnet Weekly Statistics
Total subnets: 39
Total Blockchains: 30
Total Validators: 1185
Total amount of the bet: 250,365,927 AVAXSummary??#AVAX #Avalanche $AVAX pic.twitter.com/Ld00gGxnit
— AVAX Daily ? (@AVAXDaily) December 4, 2022
Some positive news for the Avalanche
Last week, the total number of transactions on the Avalanche blockchain exceeded 13.5 million, according to data shared by AVAX Daily on Twitter.
The network has also recorded over 250 million AVAX tokens staked, while its total validators peaked at 1,185, while its TVL saw a slight increase, reaching $2.09 billion.
The developers seem to be working harder to improve the system, as evidenced by the increase in their development activity numbers.
These, however, did nothing to help prevent the crypto asset from losing some of its gains last week. Traders and holders are now also being forced to prepare for an impending price shock that will once again prevent them from taking any short-term profit.
AVAX total market cap at $4.2 billion on the daily chart | Featured image: Gripped Magazine, Chart: TradingView.com
