Avalanche [AVAX] may gain investor confidence, thanks to the positive growth in these areas

On May 1, 2023

Avalanche network witnessed organic growth in user base and revenue.
However, AVAX failed to secure enough momentum to warrant a sizable recovery.

Now that May is here, it is important to look at how Avalanche [AVAX] fared in the past months and whether this puts it in a healthy position for the next four weeks. New data suggested that Avalanche maintained healthy growth, although this may not necessarily be reflected in AVAX.

Avalanche achieved growth in multiple areas according to a 30 April Orion Research analysis. The data revealed that Avalanche revenue and daily active users grew by 105% in the last 90 days. The number of core developers also went up by 18% during the same 3-month period.

🔺@avax ( $AVAX ) is performing extremely well🚀
Over the last 90 days:
– Daily Active Users +105%
– Revenue +105.6%
– Core Developers +18%
Despite these impressive numbers, the token price is still disconnected and down by 5.1%.#AVAX #Avalanche pic.twitter.com/MFSNxJdjWh
— Orion Research (@Orion__Research) April 30, 2023

The findings confirm that the network is headed in the right direction. However, a look at Avalanche’s on-chain metrics showed that development activity has actually slowed down in the last four weeks and was now at its lowest monthly level.

Avalanche development activity and AVAX volatility

Source: Santiment

Avalanche’s performance in the aforementioned areas does not necessarily indicate AVAX’s price action.

For example, its press time price traded at a discount from its February highs. As of this writing, its volatility metric actually went down and touched its lowest point in the last four weeks. This is a reflection of the current performance.

Can AVAX match the network trajectory?

AVAX’s lower range has been trading within an ascending pattern. Its bearish price action since 19 April recently retested the ascending support line.

However, the price has been struggling with limited upside, suggesting the lack of enough bullish momentum. AVAX exchanged hands at $17.37 at press time.

AVAX price action

Source: TradingView

While predicting AVAX’s price expectations may be a bit tricky, here are a few things to consider. Its MFI was at mid-level, while the RSI hovered within the 50% level. This suggested that there was investor uncertainty as to whether prices will bounce back or continue dumping.

AVAX’s weighted sentiment saw a bit of an uptick after the latest support retest. However, the limited upside has also triggered a loss of investor confidence as indicated by the subsequent drop in the supply held by top addresses.

AVAX weighted sentiment and volume

Source: Santiment

AVAX’s on-chain volume saw a bit of rejuvenation but has since dropped back to a weekly low. This outcome indicated the current lack of strong demand in the market.

The current price action mirrors the overall investor concerns and is not a reflection of Avalanche’s performance. However, the network’s growth may contribute more investor confidence once the market switches in favor of the bulls.

This article originally appeared here.