The Avalanche (AVAX) has revealed the first avalanche bounty to create analytics for Dune Analytics had been completed successfully.
This came after several tweets about Avalanche's total subnets hitting 36 in number and its total validators hitting 1,219.
Although last week's number of transactions didn't change much as far as the DFK chain, Swimmer Network, and C-chain were concerned, the total number of transactions over the last 30 days was still high.
Avalanche, in recent news, has even stated that it is better than Ethereum in several ways, citing its transaction fees and speed as justification.
It is true that transactions on Avalanche are 20% cheaper than Ethereum and are 70% faster with 20 times lower gas fees.
However, despite the on-chain developments on the network, the question remains:
According to a tweet from the decentralized trading platform GMX, the Avalanche Foundation offered its customers trading incentives worth $4 million in AVAX tokens.
This tweet also mentions that the incentives came from Avalanche Rush, a $180 million liquidity incentive scheme.
However, despite this and several other positive developments on AVAX, it could not withstand this week's dip in price action.
AVAX managed to break above the $21.3 support (blue line) and only spent ten days above it before crashing right below it again. The cryptocurrency has tried twice to break above it again and has failed both times.
After breaking above its 100-day moving average, the price rejection from this level sent the Avalanche right below again, in a massive 40% dip to $12.
AVAX has started to recover and has risen 5% over the last day to the $15 zone where it now sits.
It may be alright for the cryptocurrency. However, some on-chain metrics are starting to show bullish signals and playing in favor of the AVAX.
AVAX's development activity, for example, has recently increased. This is an encouraging sign because it shows engineers working hard on the network.
AVAX's social dominance peaked this week on 7 November despite the dip, indicating that the cryptocurrency is relatively liked in the crypto community.
Moreover, the total number of NFT trades on the AVAX network spiked, with its NFT trade volume in US dollars soaring.
Conversely, according to data from LunarCrush, the volatility on AVAX has also spiked. However, given AVAX's poor performance over the last few days, this increase in volatility may be a sign of a deeper slump in price.
After its rejection from the $21.3 zone, the next medium-strength resistance was the $15 zone. However, AVAX has broken this level to the bottom and is currently retesting it.
This leaves the $12 support (last tested in July 2021) as the next stop for the price of AVAX. However, if the bears continue to add pressure to the cryptocurrency's price action, AVAX may indeed retest this support.
So far, the verdict on AVAX is bearish, and the cryptocurrency is expected to correct itself for a while before a steeper decline to the $12 zone.
2022 so far, has been a bearish year. Therefore, it might be safe to assume that further dips may occur.
Factoring these dips into the cryptocurrency price analysis, Avalanche is expected to have a minimum price of $9.94 by the end of 2022.
If things improve from here on out, the cryptocurrency may head back up for a retest of the $21.3 support.
Following a retest of the $21.3 zone in 2022 or in the first quarter of 2023, the cryptocurrency is expected to have a minimum price around the $25 zone.
Avalanche will advance over the rest of the year and hit or even break the $30.6 zone to the upside.
Overall, 2023 seems bullish for Avalanche and promises better price conditions.
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