The bullish momentum that AVAX ◀️ emerged from the downtrend pattern has recently slowed down, as the price has declined by about 9%, indicating early signs of trader fatigue.
The random index RSI has also rebounded from the overbought zone, reflecting a clear state of exhaustion among buyers.
✦🌍 A step towards broad regional adoption
The coinciding weakness in momentum with the announcement of establishing a dedicated foundation for distributed ledger technology (DLT) within a regulatory body in the Middle East.
This initiative aims to:
✧ Enhancing transparency
✧ Supporting digital transformation
✧ Accelerating the adoption of assets built on the Avalanche chain
This step may represent a foundation for increased long-term demand for the AVAX ecosystem.
✦🚀 Is increasing adoption driving buyers towards a bullish reversal?
As AVAX adoption expands and investor interest gradually increases, the currency appears to have an opportunity to rebound immediately after the current correction.
The delta of cumulative trading volume has shown a significant increase in buyer dominance over the past two weeks.
And if momentum returns strongly, the price may experience significant interaction near the upper limit of the wedge pattern — an area that has historically led to sharp price movements.
✦📊 Network activity is rising… despite the drop in TVL
The series data reveals a mix of signals:
✔ Contract activity within the ecosystem surged, with the number of transactions jumping to 6.9 million in 24 hours — reflecting increased network usage.
✘ Conversely, the total value locked (TVL) dropped by approximately 5%, possibly due to a strategic liquidation by some holders to provide liquidity in preparation for larger movements.
✦🔮 What's next for AVAX?
On the daily frame, the overall trend remains bullish, and wedge resistance remains the most important reference for the upcoming price path.
The liquidity area at $13 appears to be a potential target in the next phase.
✧ In the longer term, continued adoption growth and increased network activity may pave the way for a positive reversal at the main wedge support area.
