Avalanche ( AVAX ) increased by 7%: Market momentum analysis and potential risks

Avalanche (AVAX) has just announced that their blockchain will become a key platform for Securitize's proposal to launch the (Trading and Settlement System) across Europe. This information was announced on November 27, marking an important step in the application of blockchain in the continental financial market.

Securitize, a pioneering platform in the tokenization of real assets (RWAs), has received full approval from the regulatory authority CNMV of Spain, paving the way for the first blockchain-based trading and payment system in the European Union.

With near-instant payment capabilities and a flexible architecture that can be customized for organizational needs, Avalanche has convinced Securitize to choose its network. This decision not only affirms its current position but also strengthens long-term confidence in Avalanche and the AVAX token in the market.

Evaluate the indicators and their impact on market sentiment

Source: Token TerminalAccording to Token Terminal, Avalanche records an average of 23 transactions per second (TPS) and around 30,000 active addresses daily over the past 10 days.

This TPS level is equivalent to Ethereum (ETH), but Avalanche has superior processing capabilities, reaching up to 4,500 TPS with a transaction completion time of only 2 seconds, according to Nansen.

Securitize's choice of Avalanche not only reflects the impressive performance of the network but also indicates that Avalanche is operating at maximum capacity. This is a strategic decision regarding technology adoption, rather than being limited by technical capabilities.

Impact on AVAX token

This event has had a significant impact on AVAX. Just 8 hours after the information was announced, the token increased by 7.4%, before stabilizing and fluctuating around the range of $14.9–$15.

Source: CoinGlassThe surge began from the level of $13.9, while leaving many high leverage Long liquidation levels around $13.65. The liquidation map shows that Long positions here dominate over Short positions.

Therefore, the possibility of a temporary drop to “clean out” these Long positions is a risk to consider at the end of the week.

Technical Outlook

The AVAX/USDT chart on the 4-hour timeframe | Source: TradingViewPrice action on the 4-hour timeframe shows that the early month downtrend is gradually reversing. Previous resistance levels are now turning into support, with $14.84 emerging as the new anchor point.

The price surge over the past few days has created a noticeable imbalance (white) around the $14 mark. At the same time, according to the liquidation map, Long positions around $13.65 are still the short-term target of the market.

Thus, if the price returns to the range of $13.5–$13.7, this will be a favorable opportunity to enter a buy position. Conversely, an H4 close below $13.91 will signal a structural break, warning that the strength of the bulls may be weakening.

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