Assessing the metrics and their impact on the sent

Assessing the metrics and their impact on the sentiment

Token Terminal revealed that Avalanche averaged 23 transactions per second and has had roughly 30k daily active addresses over the past ten days. This tps figure was par with Ethereum [ETH], but Avalanche has a vastly higher capacity of 4,500 tps with a finality of 2 seconds, according to Nansen.

Securitize’s choice highlights a network operating well below its maximum throughput, which is a choice of adoption and not technological limitations.

The impact of this recent development on the AVAX token was notable. It rallied by 7.4% in the 8 hours following the news release, but it has been quiet since – Trading at the $14.9-$15 markThe quick rally originated at $13.9, and left behind high-leverage long liquidation levels around $13.65. The liquidation map also revealed that long liquidations around the price outweighed the short liquidations.

Therefore, a move south to hunt these liquidations is a threat to be aware of over the weekend.The 4-hour price action showed that the downtrend earlier in the month was being slowly undone. Former resistance levels were being converted to supports, with $14.84 being the latest.

The rally over the past couple of days has left a sizeable imbalance (white) around the $14-mark. Moreover, as the liquidation map showed, long liquidations around $13.65 were a short-term target.

Therefore, a revisit to $13.5-$13.7 would present a buying opportunity. On the other hand, an H4 trading session close below $13.91 would be a structure break. It would be a warning sign that bulls might be losing strength.