Is Avalanche [AVAX] bull-rally imminent? Here are the possibilities

Avalanche [AVAX] has been making some noise in the crypto industry as several valuable developments have happened in its network lately. This has grabbed the attention of many traders.

For instance, it was recently revealed that AVAX’s transaction count reached an all-time high of 3,916,369 transactions, including all subnets. 

1/ Transaction count
Daily transaction count reached ATH on 17 September, 2022 with over 3,916,369 transactions included all subnets.

DFK Subnet accounted for ~92% of total txn and the remaining 8% belonged to C-Chain and Swimmer Network respectively,

— AVAX Daily 🔺 (@AVAXDaily) September 25, 2022

Moreover, the amount of gas used also increased dramatically to an all-time high (ATH) of 722,479,684,418 gas in the following days.

These developments looked quite promising for the token as they represented more activity on the network. However, the question remains whether these have the potential to fuel AVAX’s next bull run in the coming days. 

What metrics suggest

The aforementioned updates hinted at the metric of more active users. Interestingly, the number of addresses ranged between 36,000 and 40,000 while the transaction count surged.

Therefore, it can be said that the spike was caused by already active addresses and not new users. Interestingly, last week Avalanche also marked its second anniversary. 

🎉🔺 Happy 2 Year Anniversary 🔺🎉

On Sept. 21, 2020, the first genesis code was made available to the public on Mainnet. Since then, it’s been 2 years full of growth, innovation, resilience and community.

Let’s keep pushing the boundaries of what’s possible on #Avalanche pic.twitter.com/yGoPWWfrE6

— Avalanche 🔺 (@avalancheavax) September 21, 2022

Additionally, these developments did not reflect on AVAX’s chart as it registered negative 3% 24-hour gains. At press time, AVAX was trading at $17.05 with a market capitalization of $5,043,721,718. 

However, a look at AVAX’s metrics painted a brighter picture of the token’s future, as most of them suggested an uptick.

For instance, AVAX’s development activity increased considerably in the last week, which is a positive signal for a blockchain. 

Despite all the positive updates, AVAX failed to impress investors. This was evident from the reading of its social volume metric which registered a decline. Moreover, AVAX’s trading volume also declined sharply, which happens to be a negative signal for the token. 

What to expect?

All the developments in AVAX’s network coupled with the metrics were giving mixed signals.

Interestingly, CryptoQuant’s data revealed that AVAX’s Relative Strength Index (RSI) was in an oversold position, which is a market bottom indicator. Thus, a northbound price movement can be expected.

Nonetheless, the decline in AVAX’s popularity and the decrease in its trading volume can still restrict its price from moving up. 

Source: CryptoQuant