AVAX Enters Traditional Finance with Tokenization

Avalanche (AVAX) Expands into Traditional Finance with Tokenization

Avalanche (AVAX) is making significant progress in bridging the gap between blockchain technology and traditional finance. In a notable development, ParaFi Capital is planning to tokenize a portion of its $1.2 billion assets on the Avalanche blockchain. This move aligns with AVAX’s increasing momentum, signaling potential price surges in the near future.

Technical Analysis Signals Positivity for AVAX

From a technical perspective, AVAX is currently consolidating within a descending wedge formation on the daily chart. Analysts suggest that breaking above the critical $28 resistance level could push the price to $50, representing a gain of over 104%.

If the price fails to breach the $28 mark, AVAX may retreat to lower support levels. The weekly chart indicates that the second corrective wave and the rising flag formation have completed. There is potential for a third upward wave, targeting the 0.618 to 0.786 Fibonacci regions.

On-Chain Metrics and Ownership Distribution

On-chain metrics provide further evidence of a favorable outlook for Avalanche:

• Staked AVAX: Increased by 6%, reflecting growing confidence in the network.
• Total Value Locked (TVL): DeFi TVL has risen by 11% on the Avalanche blockchain.
• Stablecoin Activity: A 13% rise in stablecoin transactions further supports the network’s growth.

Ownership distribution data shows that retail ownership increased by 4.38%, while investor ownership grew by 12%. Although whale ownership saw a slight 6% decline, the overall trend remains positive, driven by notable price movements in the market.

Investor Behavior and RSI Indicators

Investor behavior shows a 5% increase in long-term holders of AVAX. Short-term holders (one to twelve months) saw a minor decline, while day traders remain active, holding AVAX for shorter durations. This activity contributes to the overall on-chain performance of the token.

The RSI (Relative Strength Index) sits at 59, indicating a neutral market stance, while the stochastic RSI is at 81, signaling overbought conditions. Despite this, an overbought reading does not always point to a reversal. If no other indicators suggest a decline, it could indicate bullish momentum, which many traders are viewing positively.

Conclusion: AVAX Positioned for Price Gains

With strong on-chain metrics, rising staking rates, increasing TVL, and growing investor confidence, AVAX appears primed for a potential price increase. If key resistance levels are surpassed, significant gains could be on the horizon for the Avalanche network.