AVAX price analysis as Spark TVL on Avalanche hits $210m in a week

AVAX price is stuck in a deep bear market after crashing by 66% from its highest point in September, despite having some of the best fundamentals in the layer-1 industry.

Avalanche network growth is accelerating

Avalanche (AVAX) token dropped to $11.95, its lowest level since November 2023. It has declined over the past 13 consecutive weeks, underperforming other top networks in the crypto industry, such as Solana and Ethereum. 

Data shows that Avalanche’s network is doing well despite the ongoing AVAX price crash. For example, Nansen data indicate that the number of transactions increased by 10% over the past 30 days to 65.4 million. The number of active addresses exceeded 430,000.

Avalanche’s ecosystem is growing as developers seek to leverage its faster speeds after the recent Granite Upgrade. For example, Spark (SPK) network recently expanded in the network, with its total value locked rising to $210 million in a week. 

Spark is a top player in the crypto industry, where it helps investors optimize their stablecoin yield. It has a total value locked of over $7.4 billion. 

Avalanche’s stablecoin growth has continued to perform well. While stablecoin supply has declined to $1.5 billion, the adjusted volume rose by 76% in the last 30 days to $54.6 billion. The number of transactions rose by 3.5% to 35.4 million. 

Avalanche has emerged as a major player in the real-world asset (RWA) tokenization space, with $810 million in RWA assets—surpassing other leading networks. By comparison, Solana, Arbitrum, and Tron hold significantly smaller RWA portfolios, underscoring Avalanche’s growing dominance in bridging traditional finance with blockchain.

AVAX price technical analysis

The daily chart shows that the AVAX price continues its strong downtrend this month. It has moved from a high of $36 in September to the current $11.95. 

Avalanche has dropped below the crucial support at $14.90, its lowest point in March and April this year. It has moved below all moving averages.

The Relative Strength Index has dropped from the neutral point at 50 to the current 34. It remains below the Supertrend indicator, a sign that bears are in control.

Therefore, technicals suggest that the token will continue falling as sellers target the psychological point at $10. A bullish breakout will be confirmed if it moves above the resistance at $14.90.