AVAX Price On The Cusp Of A Breakout As Key Metric Surges 715%

AVAX price remained in a horizontal channel this week as Bitcoin and most altcoins jumped and then dived.

Avalanche (AVAX) was trading at $23.78 on Friday, Aug.15, up by 60% from its lowest level this year. It has formed a unique pattern that may trigger a strong comeback in the near term. 

Avalanche stablecoin and transaction growth

AVAX price could be ripe for a breakout as third-party data show that the ecosystem is performing well. One notable metric relates to stablecoin growth, an area expected to accelerate after Donald Trump signed the GENIUS Act into law.

Artemis data shows that stablecoin supply on Avalanche jumped by 14% in the last 30 days to $1.5 billion. Most importantly, adjusted transaction volume rose by 715% to $131 billion. This growth makes Avalanche one of the most active chains in the stablecoin sector.

Additional data from Nansen shows that the number of transactions on the Avalanche network has been on a strong upward trajectory. The network processed 4.5 million transactions in the past seven days, a 55% increase.

Avalanche is also becoming a key player in the decentralized exchange industry. Protocols on its chain, including Blackhole, LFJ, and Uniswap, processed transactions worth over $7.7 billion in July and have already reached $5.8 billion this month.

Avalanche’s non-fungible token network is also booming, with weekly sales soaring by 52% to over $1.42 million. This growth was driven by veBlack, whose sales volume rose by 72%.

Rising stablecoin activity, DEX volume, and NFT sales are all positive signs for AVAX price, as they enhance its utility.

Meanwhile, Avalanche is also entering the tokenized assets industry. On Thursday, Dinari Financial Network announced it would launch the first order book for U.S. stocks on the Avalanche network.

AVAX price technical analysis

The three-day timeframe chart shows that AVAX has formed a double-bottom pattern at $15.60, its lowest level in both May and July. A double-bottom is a historically reliable bullish reversal pattern.

Avalanche has also moved above the 50-day moving average and is about to flip the neckline at $27.4. Moving above that level will confirm the bullish breakout. 

The distance between the neckline and the double bottom is approximately 43%. Therefore, a breakout could see AVAX rally to $40, which would represent a 65% gain from the current level.