Avalanche (AVAX) has retreated to November levels during writing. Bitcoin (BTC) rose from $ 68,000 to 106 thousand dollars, while Avax had made significant gains. However, these gains were completely deleted. Interestingly, the BTC has largely maintained its earnings, but Avax has a decline. This has once again revealed that Altcoin remained weak in the price graph.
Development activities are increasing, but the AVAX price remains weak
In the last six months, the Avalanche ecosystem has increased development activities. However, this is not reflected in the price movement.
According to data shared in the centimeter InSights, Avalanche has increased its development activities in the last six months. Although this is seen as a positive development, other network data show that investors should be cautious.
Active addresses and the decline in network growth concern
Avalanche’s total locked value (TVL) rose to $ 1.65 billion in mid -December. However, since then, it declined to $ 1.28 billion during writing.
In January, the number of daily transactions reached 500 thousand. However, this figure is currently down to 350 thousand.
What is even more worried is that the rapidly increasing active address and the number of new addresses in the first week of February has almost completely disappeared. In the last week, the number of new addresses decreased by 95 %and the number of active addresses decreased by 84 %. This indicates a lack of trust in the market.
26 dollars critical support level
According to the analysis of crypto analyst Ali Martinez, the $ 26 level for AVAX is an important support area. However, as long as the current decrease trend continues, this region also has a risk of breaking.
The current data show that Avalanche is likely to recover in the short term. The number of falling active addresses and the slowing network growth indicate that the demand for AVAX is reduced. For this reason, investors should closely follow price movements in the coming period.
