Avalanche [AVAX] announced that its blockchain will power the Securitize bid to launch a pan-European Trading and Settlement System. The announcement came on 27 November.
Securitize, a leading platform for tokenizing real-world assets (RWAs), had secured full regulatory authorization from Spain’s CNMV to operate the European Union’s first blockchain-based trading and settlement system.
Avalanche’s near-instant settlement time and architecture configurable for institutional use has convinced Securitize to choose the network. This has buoyed both short-term and long-term belief in Avalanche and AVAX.
Assessing the metrics and their impact on the sentiment
Source: Token Terminal
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 mark.
Source: CoinGlass
The 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.
Source: AVAX/USDT on TradingView
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.
Final Thoughts
- The Securitize news boosted demand and bullish momentum in the short-term for AVAX and Avalanche
- Cluster of long liquidations right under the $14-level could play a role in dictating AVAX’s next price move
