- AVAX clung to the $35 support zone as its price action has not been bullish in recent weeks
- On-chain metrics revealed steadily growing activity and potential demand for AVAX
Avalanche [AVAX] has clung to the $35 support zone over the past month. In fact, a recent report noted that liquidation clusters below $34.72 could drag the price south. Based on the technical analysis as well, the $35 support zone seemed to be a must-defend area for the bulls.
Failure here could push the price to $28.5 on the charts.
Source: IntoTheBlock
The correlation matrix from IntoTheBlock revealed that AVAX moved alongside Ethereum [ETH]. However, ETH has had a tough time being bullish in recent weeks.
Encouraging development and on-chain activity
Source: DefiLlama
Since 2021, core developer numbers and the number of commits has been growing.
These numbers have declined since June 2024. And yet, at press time, they were higher compared to late 2021. This seemed to be bullish in the long-term. The volume did not match late 2021, but has picked up noticeably in recent months. Sustained growth is needed to fuel demand and hence, the price of AVAX.
Source: DefiLlama
The total value locked (TVL) has vastly fallen since the 2021 highs of $11.44 billion. While these transactions have slowly grown in recent months, they haven’t been close to challenging the late 2023 highs nor 2022’s highs.
The large positive inflows two weeks ago were intriguing though. Figures for the same indicated a hike in capital or assets deposited into the DeFi protocol, like funds being added to liquidity pools or staking. It can interpreted to be a positive signal, especially as the inflows have generally been positive in the last two months.
Source: IntoTheBlock
New and active addresses have also trended higher in the last two months. This is a sign of potential demand for AVAX.
Data from IntoTheBlock also recorded a hike in the total non-zero balance addresses across the Avalanche network. This number has expanded from 3.42 million in May 2023 to 9.64 million in January.
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Overall, on-chain metrics revealed steady growth in relevant metrics in recent weeks and months. The decline in development activity is only a minor concern for now. However, the stablecoin market cap’s drop earlier this month may be a worry for the bulls.
