Avalanche Sees 68% Rise, is AVAX Becoming the Right Bet for Investors?

Since the beginning of 2023, the Avalanche [AVAX] ecosystem has seen substantial expansion. On a year-to-date (YTD) basis, a tweet claimed that the network’s daily gas use increased exponentially.

The increase in the number of new contracts may be one factor contributing to the spike. According to Dune Analytics, the number of new contracts increased monthly by 30% in January and by a staggering 75% in February.

Avalanche has established high-profile partnerships since the beginning of the year to increase the popularity of its network. It teamed up with Amazon AWS in January to encourage the use of blockchain technology by businesses and government organizations.

With the announcement of a partnership with Indian streaming platform Loco to provide an NFT gaming marketplace earlier this week, it made a significant advancement in the GameFi environment.

Avalanche’s social analytics saw a sharp boost as a result of these high-value sales, rising by 16% in mentions and interactions over the previous week.The NFT ecology at AVAX expanded during the previous week as well. As of January 23, there were more NFT transactions than the day before, and the amount of NFT trades increased as well.

Data from CoinMarketCap indicated that AVAX hit its low point on January 13 and then remarkably recovered to post gains of 14% up to press time.On February 19, AVAX crossed above the suggested resistance level of $19.54, but it soon reversed to test it as support. In the near future, this may indicate a positive trend.

While it was declining, the Relative Strength Index (RSI) was still higher than the neutral 50 level. The Moving Average Convergence Divergence (MACD) line almost crossed the signal line, indicating that it was challenging to estimate AVAX’s future move.

The trajectory of AVAX’s Open Interest (OI) increased in line with its price. New roles were being filled as a result of the increase in OI, which would help the pricing temporarily.